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

Agreement Between SMMUSD and Malibu Moves District Separation Efforts Forward

April 18, 2024

April 18, 2024

The Agreement Awaits Approval by Both the Malibu City Council and the Smmusd Board of Education The City of Malibu...

(Video) Award-Winning Pianist to Premiere “Rocket Man: A Live Orchestral Experience” in Santa Monica

April 18, 2024

April 18, 2024

Classic Songs Will Include “Crocodile Rock” and “Goodbye Yellow Brick Road” @palisadesnews “Rocket Man” is coming soon to Santa Monica...

Legislation Seeks to Place Speed Cameras on Pacific Coast Highway

April 17, 2024

April 17, 2024

The Proposed System Would Work Alongside Radar Feedback Signs, with Violators Facing Fines of up to $500 Malibu officials, led...

Girls Learn Self Defense at Empowerment Summer Camp for Girls

April 17, 2024

April 17, 2024

This summer, girls are invited to explore practical self defense training at SHIELD Women’s Self Defense’s 2024 Empowerment Summer Camp...

Marina del Rey Apartment Shooter Faces 20 Felony Charges, Could Spend Life in Prison

April 17, 2024

April 17, 2024

The Self-Employed Chef Is Being Held in Lieu of Over $5M Bail By Zach Armstrong A man accused of firing over...

Brentwood Art Center: Kids Explore Fundamentals of Drawing, Painting and Mixed Media

April 17, 2024

April 17, 2024

The beloved Brentwood Art Center is hosting summer camps at its new location at Olympic and 17th in Santa Monica. ...

Camp Integem: Explore, Design and Innovate with Future Tech

April 17, 2024

April 17, 2024

This summer, kids are inviting to make magic as they journey into the fun-filled, hands-on world of artificial intelligence (AI),...

(Video) Mayor & Vice Mayor of Santa Monica Speak Out Against Needle Exchange Program

April 16, 2024

April 16, 2024

The Demonstration was Organized by the Santa Monica Coalition @palisadesnews A Santa Monica rally has held against the needle exchange...

Los Angeles County District Attorney Announces Charges In Brutal Venice Sexual Assaults

April 16, 2024

April 16, 2024

Charges Filed Against Suspect in Venice Canals Case by LADA George Gascon Los Angeles County District Attorney George Gascón has...

Ye Slashes Price of Malibu Pad by $14M

April 16, 2024

April 16, 2024

Ye’s real estate investment hasn’t yielded positive returns Controversial rapper and entrepreneur Kanye West, now known as Ye, continues efforts...

Measles Infected Traveler Visited Santa Monica Pier, Public Health Officials Warn

April 16, 2024

April 16, 2024

Authorities Urge Individuals Who Were at The Specified Venues to Monitor Their Health The California Department of Public Health notified...

GoFundMe Raises Over $84K for Venice Canal Attack Victim

April 16, 2024

April 16, 2024

The Victim Received at Least Eight Fractures to Her Jaw, a Large Laceration to the Back of Her Head and...

Kids Learn Local Waters in Aquarium Science Camp

April 16, 2024

April 16, 2024

This summer, kids have the opportunity to engage in science and learn about the fascinating water systems in Santa Monica...

Saint Monica Prep: Mariner Sports Camps Focus on Fundamentals

April 15, 2024

April 15, 2024

Teams at Saint Monica Preparatory took big wins this winter season.  The coaches leading an undefeated girls’ soccer team, winning...

Sophie Dance West Dance Camp Enrolling Now

April 15, 2024

April 15, 2024

Calling all Swifties! Sophie Dance West, an all-inclusive kids dance studio that welcomes any skill level from beginner to highly...