Category Archives: Real Estate Outlook 2015

Shift In Real Estate Market Creating More Opportunities For Buyers

SCV housing prices leveled off in September while interest rates dropped. Is it time to jump into home ownership?

New statistics recently released from the Southland Regional Association of Realtors showed single family home

Team Avalos Real Estate Santa Clarita
Rose and Carlos Avalos

prices leveling off in the Santa Clarita Valley for the month of September.

Home values dropped slightly from $523,000 in August to $515,000, which is not untypical for this time of year. Condo prices held steady, with no decrease month over month between August and September.

This however may create better opportunities for home buyers looking to get into property ownership before the end of the year.

Interest rates still dropping.

Despite rumors of a rise by year’s end, mortgage interest rates continue to fall, and are holding below 4 percent, giving home buyers a continued boost in their purchasing power. As of the date of this article, mortgage rates are holding as follows: Continue reading Shift In Real Estate Market Creating More Opportunities For Buyers

Fed Hints At Possible Rate Hikes

The Federal Reserve has held off on raising rates for now, but how long will it last?

Buyers have been very fortunate for the past several years to enjoy what has become historically low interest rates. In 2008, the Federal Reserve dropped their base rate (The rate at which lending institutions can borrow money) to practically zero percent. Of course, consumers pay a bit more on their rates, but even still, home buyers have been able to take advantage of rates as low as 3 and a half percent. Currently, rates stand just below 4 percent.

Why are interest rates so low, and why might they rise again?

You might say that interest rates can reflect economic conditions nationally, and even internationally. In most cases, rates rise or fall based on Tips for first time home buyerseconomic forecasts that include the potential for inflation as our economy improves. That being said, in 2008 the Federal Reserve dropped rates in an effort to stabilize the real estate and credit markets, which were struggling due to issues that affected our economy and put the US on shaky financial footing.

Why would rates rise? As our economy improves, there is more money for goods and services, which in turn may cause prices to rise, or “inflate,” due to demand. There’s a delicate balance between inflation that could get out of hand (Known as “runaway inflation”) and putting systems in place that can maintain our economy without becoming volatile or unpredictable.

Raising interest rates has the ability to control the purchasing power of consumers to the degree that it could make them think twice about how they spend their money. This in turn could help to keep the price of goods and services steady, thus avoiding potential runaway inflation.

The Federal Reserve recently held off on raising rates due to our economy not showing any warning signs of unpredictable inflation. That being said, they may revisit this before the end of the year, with news that rates could rise as early as December.

Don’t wait! Qualify for a loan today!

If you’re on the fence about buying a home, now is the time to find out if you qualify for a mortgage and begin to take advantage of all the benefits of home ownership. Contact Team Avalos today for a no obligation consultation.

 

Home Prices Hold Steady Through August

Santa Clarita holding its own in housing sales.

As summer sizzled its way through August, the SCV saw only a slight uptick in overall median housing prices, holding at $468,600, rising $4,000 Overlooking Saugusfrom July. This median level includes all homes, including single family and condominium sales.

Typically we do see an upswing in August from July as it represents the peak of the summer buying season. August also showed less listings and escrow closings than July, with 446 homes being listed for sale, and 415 homes closing.

Of course, even with home prices on the rise, buyers are still finding their purchasing power boosted by interest rates that are still below 4 percent, despite worries that they may rise. That fear was put on hold last week when, after a two day conference held by the heads of the Federal Reserve, it was decided that rates would remain at their current position for a while longer. There are hints that they may rise as early as December, however.  Continue reading Home Prices Hold Steady Through August

SCV Home Sales Up Nearly 20 Percent Over This Time Last Year

Santa Clarita single family homes holding at just over $500K, while condos take a leap forward in July.

Recent statistics released by the Southland Regional Association of Realtors showed home prices holding, with single family homes in the Santa Team Avalos Real EstateClarita Valley at an 8 year high, and condo prices jumping $15,000 from June.

The median price of a single family home in the SCV clocked in at $509,500 for the month of July. Condominiums in the valley are currently at a median price of $330,000.

442 homes closed escrow in July, which is a 16% increase over July of 2014. A total of 546 residential properties were listed last month, with 470 homes opening escrow.

Home Mortgage Rates

Home mortgage rates have dropped once again below 4 percent, holding as of the date of this article at 3.93 percent for a traditional 30 fixed rate loan. Some other loan options have even more favorable rates, including: Continue reading SCV Home Sales Up Nearly 20 Percent Over This Time Last Year

Santa Clarita Home Prices Jump To Over $500K

Median Single Family Home Prices Rise 6% In One Month

Good news for Santa Clarita homeowners! Recent statistics released by the Southland Regional Association of Realtors showed the median price of a Team Avalos Real Estatesingle family home in the SCV rose to $520,000 in March; up a little more than 6 percent from February’s median price of $490,000.

That’s a $30,000 increase in equity in one month!

Are you starting to see why it’s better to own than to rent your home?

Now to be clear, home equity doesn’t jump this much every single month, but year over year, real estate in the Santa Clarita Valley has averaged an increase of over 6 percent since 1998 (The first full year the Southland Regional Association of Realtors provided public statistics). This includes the short term declines in the real estate market during the darkest years of the recent recession between 2008-2011.  Continue reading Santa Clarita Home Prices Jump To Over $500K

Will The Federal Reserve Raise Interest Rates?

Rates have remained low for the past several years, but when should they be raised? And just what IS the Federal Reserve, anyway?

We talk a lot about interest rates, and for obvious reasons. Unless you are paying cash for a home, then they play prominently in just how much home

Fderal Reserve Chair Janet Yellen
Fderal Reserve Chair Janet Yellen

you can afford.

Yes, rates have risen and fallen over the past few years, and today we’re not talking about interest as it pertains to the value of loans that are bought and sold on the stock market (Which can also affect rates); we’re instead talking about the Federal Reserve.

What is the Federal Reserve?

Established in 1913, the Federal Reserve acts as the nation’s bank. They set financial policies and terms that banks and lending institutions follow, and also loan money to those banks at a base interest rate that is below what the consumer would pay. The following video provides a brief and easy to understand explanation of how the Federal Reserve works.

Will interest rates go up?

Good question. Federal Reserve Chair Janet Yellen has more than hinted that it’s possible rates could rise sometime this year. If the Fed does raise the base interest rate, it will definitely affect a buyer’s loan limit or their mortgage payment amount. The best thing to do if you’re on the fence about buying a home is to lock in your rate now.

We are your choice for buying and selling real estate!

Team Avalos Real Estate is dedicated to helping you achieve all of your real estate goals, and our goal is to make sure your experience is positive and achieves the best results whether you’re buying or selling a home in the Santa Clarita or San Fernando Valley areas. Contact us today for a no obligation consultation.

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Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355

Office: (661) 290-3743
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Condos Rise, Single Family Homes Take a Slight Dip In January

Home prices hold fairly steady going into 2015 in the Santa Clarita Valley.

New statistics out from the Southland Regional Association of Realtors showed home prices holding steady as we move head on into 2015.Santa Clarita Real Estate Update. Photo courtesy George D. Cummings

January showed single family homes dropping in median price by $15,000, which is not uncommon for this time of year as sales slow down slightly after the holidays. What’s interesting is that condominiums in the Santa Clarita Valley increased in January by $15,000 over December 2014. The last time the SCV saw condo prices jump (rather than fall) in January was in 2006.

This interesting rise in condo prices could be attributed to a few factors:

Federal Housing Administration (FHA) guideline changes for first time home buyers.

The FHA has made several changes to their approach toward first time home buyers in 2014. This included initiating an incentive program called Blueprint For Access. They have also reduced the cost of Private Mortgage Insurance by about 35 percent.  Continue reading Condos Rise, Single Family Homes Take a Slight Dip In January

Low Rates Spur Huge Jump In Mortgage Applications

January sees highest number of loan applications since 2008.Mortgage applications on the rise in 2015

With mortgage rates holding at below 4 percent for the past few months, it’s no wonder home buyers are seeing the opportunities available to them in the form of greater purchasing power.

According to the Mortgage Banker’s Association, nationwide mortgage applications were up 49 percent as of the week ending January 9th 2015, which is the largest increase since 2008. What’s interesting about this phenomenon is that it flies in the face of predictions made by some financial analysts who predicted mortgage rates would rise.

So why have mortgage rates remained low despite predictions?

We’ve seen the foundations of not just an economic recovery, but a true rebound in the past 12 months. Nationally, unemployment rates have dropped, while the GDP (Gross Domestic Product) surpassed expectations in the latter part of 2014. Stocks have been strong, as have Mortgage-Backed Securities. Strong investment in the stock side of real estate has helped maintain low rates as well. Consumer confidence has also soared in the wake of lower gasoline prices, putting more money into peoples’ pockets.  Continue reading Low Rates Spur Huge Jump In Mortgage Applications