We hope everyone had a Happy and Safe 4th of July! Ours was eventful with visiting children, Water Wars in the Harbor, and a traditional barbeque crowned by the fireworks in Dana Point.
Interest rates have risen to recent highs, due to continued new job growth, dropping unemployment, and the Fed’s news that they will yet again raise rates to slow inflation further. Although inflation has lowered to 4%, it has not yet hit the desired target of 2 to 3%.
Most economists do expect rates to come down in the next six months, but they are not expecting as steep a drop as before. Our advice is to prepare for the “new normal.” Once rates stabilize, we will likely see rates in the 5’s for some time.
Home prices are very slightly off their highs of last May. Orange county still has a $1 million median price, down from $1.05 million, while LA county has a median of $800K, down from the $860K high a year ago. And, homes are again selling over list price!
The biggest issue continues to be a very low sales volume, which can primarily be attributed to the paucity of listings. Of course, interest rates play into the volume of sales, but there are so few listings there is little downward pressure on home prices, if any.
MOVING OUT OF STATE?
We are part of a large network of loan officers licensed in all states in the country, save New York. We can assist our clients with financing when moving or buying a second home out of the state of California.
The most common states to move to? Nevada, Arizona, Oregon, Idaho, and Texas. Lower taxes seem to be a large part of the equation! There is also a migration out of cities and into suburban or rural environments.
THIS AND THAT
We continued our holiday celebration last Wednesday with a pool party with dear friends. It was lovely weather for the pool, and even better times with old friends! And, my sister joined me for a long weekend to visit and attend the art festivals in Laguna! She is a new member of the Madera County Grand Jury. Pretty impressive stuff!