LA-Area Home Sales Are Still Strong Despite Increased Mortgage Rates

Interest rates on the typical 30-year fixed mortgage have risen to 6.08 percent as of late

By Dolores Quintana

No one knows where the real estate market in Los Angeles is headed. According reports, however,the market has started to slow as mortgage rates have risen steadily and prices of homes have started to drop. 

Interest rates on the typical 30-year fixed mortgage have risen to 6.08 percent as of late. This rise is due to high rates of inflation according to UCLA accounting and real estate professor Eric Sussman, as quoted by KCRW.com. In comparison, the average rate for the same mortgage was 2.96 % in 2021 as reported by KCRW.com

Los Angeles Real Estate Agent Dunia Handy Gill said, as quoted by KCRW.com, “I’m still seeing multiple offers. I’m seeing cash, but I’m also still seeing buyers with mortgages, but not [with] 30-year fixed mortgages, more of a seven ARM [adjustable-rate mortgage], even a 10 ARM. So mortgage companies are getting a little more creative to continue to have buyers that can purchase.” 

So homes are still being purchased, especially in specific and luxurious areas like Pasadena according to Handy Gill.  

Professor Sussman notes that the people of Los Angeles still have pent-up desires to buy property because of how they have been sequestered by the pandemic, according to KCRW.com. He is skeptical of a potential market crash. 

He says, as quoted by KCRW.com, “I’ve told everyone if they’re waiting for a collapse, they’ll be waiting for Godot. It ain’t gonna happen because of modest supply. They got so overstretched and that’s what causes the sharp declines and that snowball effect when people sell the banks, then have issues with their loans and they’re foreclosing. … That just is not going to happen this cycle as best that I can see.” 

Handy Gill and Sussman agree, in general, that it is still a good time to buy a home in the area. 

Handy Gill says, as quoted by KCRW.com, “If you are intending on purchasing and holding on to a property for at least three to five years, this is absolutely a great time. And I’m seeing that there’s more on the market for the buyers.”

Wisely, Sussman would like to avoid overly optimistic predictions and believes that trying to predict the real estate market is very difficult. He says, as quoted by KCRW.com,  “It’s a fool’s errand to try to seek out peaks and troughs in markets, certainly in real estate. So I agree with the broad sentiment.”

Professor Sussman said, according to KCRW, that he doesn’t envy the job of Federal Reserve Chairman Jerome Powell and his job’s responsibility to avoid a recession by balancing interest rates.

Related Posts

“Caterpillar Soup” Returns to Santa Monica Playhouse for 20th Anniversary Performances

November 8, 2024

November 8, 2024

Written and Performed by Lyena Strelkoff, the Autobiographical Production Explores Her Journey After a Paralyzing Fall The critically acclaimed one-woman...

Chinese Chemical Company and Executives Indicted for Allegedly Fueling Fentanyl Crisis in Los Angeles

November 8, 2024

November 8, 2024

U.S. DOJ Charges Hubei Aoks Bio-Tech and Executives With 13 Counts  A federal grand jury has indicted Hubei Aoks Bio-Tech...

Renewable Energy Group to Host Scenic Hike in Palisades

November 7, 2024

November 7, 2024

The Route Is Based on a Walk Described as “The Most Scenic of All the City’s Stairwalks.” WRISE Los Angeles,...

Megacity Review: Genaro Trejo’s Global Platform for Urban Arts and Literature Launches in Los Angeles’ Westside

November 7, 2024

November 7, 2024

Santa Monica, CA – A new voice has arrived on the Los Angeles literary scene with the launch of Megacity...

Malibu Brush Fire Damages Homes, Burns 50 Acres: Report

November 7, 2024

November 7, 2024

The Fire Broke Out Under Critical Fire Weather, With a Red Flag Warning Issued for the Area Due to Powerful...

Thanksgiving 2024: The Best Places to Order Your Holiday Pies in Los Angeles

November 7, 2024

November 7, 2024

Get Ready for Your Thanksgiving Dinner With the Best Desserts November is the official start of the holiday season and...

The Whaler Celebrates 80 Years as Venice Landmark

November 7, 2024

November 7, 2024

Throughout November, the Whaler Will Feature Drink and Food Specials, Live Music, and Weekend Events The Whaler, a Venice Beach...

(Video) Palisades Voters Speak on Their Choices at the Ballot Box

November 6, 2024

November 6, 2024

Local Voters Made Their Voices Heard on Tuesday https://www.tiktok.com/t/ZP8LLEYkp/

Topanga Canyon Blvd Closed to Non-Residents Due to High Fire Danger

November 6, 2024

November 6, 2024

Closures Run From Mulholland Drive to Pacific Coast Highway Topanga Canyon Boulevard will be closed to non-residents from Mulholland Drive...

Former Marina del Rey Firefighter Alleges Discrimination in Lawsuit Against County: Report

November 6, 2024

November 6, 2024

The Plaintiff is Reportedly Seeking Over $25K in Damages A former firefighter who served in Marina del Rey is suing...

Big Blue Bus Gets $53M for Electrification, Service Improvement

November 5, 2024

November 5, 2024

Grant to fund zero-emission fleet conversion, expanded transit service, and workforce training initiatives The California State Transportation Agency announced Wednesday...

Historic Venice Post Office Building to Become a New Hub for Creatives

November 5, 2024

November 5, 2024

“The Lighthouse” will offer workspace, production facilities, career development, and artist studios in Venice’s iconic Windward Circle By Zach Armstrong...

DuPont Clinic Issues a Statement After City of Beverly Hills is Held Accountable By CA Attorney General Bonta

November 5, 2024

November 5, 2024

AG Rob Bonta Intervenes in Unprecedented Case, Defending Abortion Access Attorney General Rob Bonta launched an investigation after reports that...

The Willows: 30 Years Going Strong

November 5, 2024

November 5, 2024

Founded in 1994, The Willows Community School, located in Culver City, California, is a Developmental Kindergarten through 8th grade non-profit, co-educational...

Palisades Art Association to Host Juried Art Show

November 4, 2024

November 4, 2024

Artists Are Welcome to Submit up to Three Artworks The Pacific Palisades Art Association will hold its annual Juried Art...