October 7, 2022 Breaking News, Latest News, and Videos

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

Santa Monica Burger Joint Big Jo’s Closing After 65 Years

October 6, 2022

October 6, 2022

Restaurant to close October 17 after property sold By Sam Catanzaro Burger joint Big Jo’s, a Santa Monica institution for...

Madame Wu, Famed Santa Monica Restaurateur, Dies at 106

October 6, 2022

October 6, 2022

Restaurateur begind Madame Wu’s Garden passes away September 19 By Dolores Quintana Sylvia Wu, born Sylvia Cheng, was much better...

Stacked Lineup of Restaurants Planned for Delta’s New LAX Terminal

October 6, 2022

October 6, 2022

Alfred Coffee, Native, Chicken + Beer and more set to come to the all-new Terminal 3 By Dolores Quintana A...

Third Annual Arnold Maeda Manzanar Pilgrimage Grant Application Period Now Open

October 4, 2022

October 4, 2022

Applications due January 6, 2022 Submitted by the Venice Japanese American Memorial Monument (VJAMM) Committee The Venice Japanese American Memorial...

Santa Monica Human Services Grants Program Request for Proposal for FY 2023-27 Now Open

October 4, 2022

October 4, 2022

Applications due January 18, 2022  On Wednesday, September 28, 2022, the City of Santa Monica released a Request for Proposals...

Westside Ladies Clean Up History in Santa Monica

October 4, 2022

October 4, 2022

Members of the Santa Monica Chapter Daughters of the American Revolution (DAR) spent some time this past month cleaning a...

Local Businesses Donate $400,000 to We Are Santa Monica Fund to Support Police Cadet Program

October 4, 2022

October 4, 2022

Program to be reinstituted thanks to donation Last week, the Santa Monica City Council approved budget appropriations for a $400,000...

Chevy Takes Over Electric Avenue For EV Test Drive Event

October 4, 2022

October 4, 2022

Local EV test drive event showcase the utility of EVs and EUVs in addition to new models by Chevy..Video sponsored...

Adult Female P-65 Is the First Mountain Lion in Study to Die of Complications From Mange

October 4, 2022

October 4, 2022

P-65 was found dead by biologists on March 4, 2022, near a stream in the central Santa Monica Mountains Adult...

Santa Monica Businesses Welcome German Health Trade and Science Delegation

October 3, 2022

October 3, 2022

German Minister-President, State Secretary and business leaders visit Santa Monica, forging path in artificial intelligence and medicine Quantgene, a Santa...

Santa Monica Police Department to Begin Enforcement for Vehicles Parked on Parkways

October 3, 2022

October 3, 2022

Officers will also enforce vehicles parked on driveway aprons The Santa Monica Police Department (SMPD) will soon begin to cite...

New Affordable Housing Development Coming To 7th Street: Santa Monica Real Estate Report – October 3rd, 2022

October 3, 2022

October 3, 2022

Property, Developments, and Listings on the Westside.*  New Affordable Housing Development Coming To 7th Street* The Director Of Community Services,...

City Considering Mixed-use Project to Replace Chipotle on Wilshire

October 3, 2022

October 3, 2022

The City of Santa Monica is currently reviewing a mixed-use development that would replace Veggie Grill and Chipotle on Wilshire...