RATES
When clients ask me where rates are heading (nearly every
day), I always point out that since we have an international economy today,
events around the world can and do affect interest rates here in the
US. Case in point, the markets are
currently experiencing dramatic volatility and rates have dropped a bit after a
rapid climb in the first Q this year.
How long will it last? No one can
guarantee they will remain on a downward trend, as they have been up and down
over the last week. The bottom line is
we can only move forward knowing that eventually rates will continue to rise. There is nothing like the thrill of receiving
three or more reprice notifications during one day! Up by .25%, down .375%. Yikes!!
The war is having effects in multiple areas including
interest rates; the stock market; oil prices (as we all can see at the gas pump)
and on many other consumer products, as the supply chain is further
impacted. At this juncture no one can
predict how long this will last. Only that the poor citizens of Ukraine are
feeling much worse pain.
VALUES
Home prices across the country rose last year by an
astounding 19%. In both Los Angeles
and Orange Counties, the median home price was $950,000 for the month of
January. Crazy! Most homeowners have a tremendous amount of
equity to play with, whether to pull out cash for upgrades or remodeling, adding
a new pool, or to buy another home.
The problem is the short supply of new housing. I looked at a few Open Houses the past
weekend. It was so nice to actually go
to an Open House! One property was a
total teardown with incredible ocean views in the hills of San Clemente, listed
at only $1.45 million. WOW. We figured it would take at least a $2
million budget to get it to a livable condition.
The lack of inventory is a major contributor to rising home
prices. Our inventory in Southern
California is at an all-time low. That
is right, I said an ALL-TIME low.
In some areas condo values rose more quickly than did values of single-family
residences, which is an anomaly. This is likely due to higher demand at the
lower price levels pushing up those values.
DID YOU KNOW?
HUD came out with Reverse Loans for purchase with the HECM
program in 2009. I closed a home
purchase in March of 2009 with a Reverse loan, for what may have been the first
in California.
FUN STUFF
Steve and I began golfing almost every weekend during COVID
as one of the few activities we could safely participate in. While I still don’t have a handicap, I want
to report that during our recent golf scramble with 15 couples from our yacht
club, we used several of my drives, fairway shots and putts. YESSSS!
Speaking of the yacht club, things are beginning to return
to normalcy with a Mardi Gras bash, weekend brunches and even prime rib night. Next up:
A weekend cruise to Newport to visit with other yacht clubs. Steve enjoys crewing on a couple of
different boats for the racing events which happen most weekends. Then we have the Newport to Ensenada race,
otherwise known as N2E in April. I will
go down on a tour bus and meet the racers when they get in. You never know how long the race will take as
it all depends on the wind conditions.
Please remember, Life is Good! And don’t hesitate to call us with any
questions you may have.
