The Pasadena area housing market is experiencing a heat wave. It’s not unusual for homes to come on the market and sell within 10 days, often with multiple offers. This is typical of what is happening in the Los Angeles Metro Area. The California Association of Realtors® (C.A.R.), recently released its March 2015 Sales and Price Report and it shows that the median price of homes in the L.A. Metro Area increased 5.3% over February 2015, and 7.4% over March 2014. The number of sales increased an amazing 38.7% over February 2015, and 10.1% over March 2014.
“The housing market is picking up momentum and continuing its upward trend as economic conditions improved throughout the state”, said C.A.R. President Chris Kutzkey. “A better economy, improved job creation, and an increase in inventory in the Central Valley and Southern California, in particular, are pushing sales higher, which led to the strongest February-to-March increase we’ve seen since 2008.”
Because home sales are growing at a faster rate than homes are coming on the market, the supply of existing homes for sale is shrinking. The shortage of homes for sale, along with the still very attractive interest rates, has caused the increase in home prices. Interest rates for a 30-year fixed rate mortgage averaged 3.77% for March 2015, and adjustable rate mortgages averaged 2.46%.
What does this mean to you? If you’re in the market to buy a home, or are thinking about buying a home in the near future, don’t wait. Inventory should continue to be less than demand for the foreseeable future, and prices will continue to climb.
There are three very important things to do to be a successful buyer in today’s real estate market.
First, get yourself pre-approved or pre-qualified for a loan at the maximum price you can qualify for or are willing to spend. Working with a reputable lender who can get your loan funded on time is crucial.
Second, make sure your financial information is readily available. You’ll need your most recent bank or savings account statements showing that you have the funds to pay for your down payment and closing costs, plus about six months of “reserves” to cover your mortgage and property tax payments.
Third, find a really good, trustworthy Realtor to help you find the right home for you, and to help you successfully negotiate an offer.
Your agent should show you homes that are priced within or slightly higher than your budget (to allow for negotiating room). When she shows you property, she should not only point out the features of the home that may not be visible, but also point out the flaws that could cause you problems in the future. She should be a very good negotiator who helps you to structure a successful offer, and also continue to negotiate on your behalf throughout the inspection and escrow period. She should have great resources of lenders, home inspectors, and contractors to refer you to, to help you make the transaction as easy and successful as possible. And, she should work with you throughout the transaction, to make sure all the details are handled correctly and on time. Once escrow closes, and you own your new home, she should be readily available to help solve any problems that may come up in the future.
For the full article from C.A.R., go to www.car.org/newsstand/newsreleases/2015releases/march2015sales
For more information about Carol Lollich at Concierge for Homes, please call (888) 412-0172 or visit pasadena-homes.com. You can also email Carol at [email protected].