With 2018 officially behind us, we now look squarely into the eyes of a new year,and all of the hopes, wishes and desires that come with it. If one of your New Year resolutions is to purchase a new home, here are 4 reasons why now may be the best window of opportunity you’ll see in 2019.
1. Interest rates are still low
In 2018, we saw a total of four interest rate hikes. The year started with a 30 year fixed rate mortgage at 3.95%, and ended 2018 at 4.55% The central bank has rumored there will be fewer rate hikes in 2019 than previously suggested, and most likely none in the next 90-120 days. This means you can lock in a 30 year fixed rate mortgage for under 5%, which from historical standards, is still a great rate!
2. There is less competition now
Most buyers tend to start house hunting around April 1st, the traditional beginning of the spring buying season. For those buyers who are actively looking now, they will have more homes to consider and fewer buyers to compete against. This makes getting under contract on your dream home,without getting into a bidding war, that much more feasible.
3. Last year’s sellers will be more motivated
Expect many of this year’s“new” listings, to be last year’s inventory which most likely didn’t sell because it was overpriced. These homes will be priced to the “now”market and will have motivated sellers behind them, looking to negotiate a deal. Nothing provides a better buying opportunity, than a motivated seller who no longer wants what they have…nothing!
4. You’ll pay less for a home now, than you will in 6 months
In forecasting home prices for the New Year, both Zillow and Core Logic predict home values in LA County will rise 4.8-6.0% in 2019. With a median county-wide home value of$686,500, homes will be appreciating at an average rate of$2,860.41/mo. This means it’ll be cheaper to buy now than in March,and cheaper to buy in March, than in June. The longer you wait, the more you’ll risk paying.
In the end, I predict there will be some tremendous buying opportunities over the next 18-24 months. Those who are less interest rate sensitive, will have the luxury of a “let’s wait and see” approach, when it comes to purchasing real estate. For those who are motivated, ready to buy, and have been waiting for things to cool down a bit, NOW is the time to get off the fence,and turn that New Year resolution of home ownership into a reality.
If you have any questions about the state of current LA Westside real estate market, or are considering purchasing a home in 2019, feel free give us a call, or go to the following link to book a “no-cost”, “no-obligation” consult.
Wishing you and yours, the very best 2019 has to offer…Happy New Year!