How Interest Rates are Affecting the Spring Homebuying Season 😎

As I’m sure you heard, the Federal Reserve raised interest rates by 0.25% last Wednesday. Despite recent banking collapses, the Fed continued on its course to curb inflation.  However, in Jerome Powell's recent meeting, there were indications that they may pause future hikes.  Here are 5 takeaways to keep in mind.

Since the announcement, according to Market Watch, mortgage rates have fallen to their lowest level since early February.  If we continue to see this trend, I would expect a continued rebound in buyer demand as we head into the Spring homebuying season.

In fact, we've already seen an increase in bidding wars. This week, I put this cute Highland Park Bungalow into escrow and we beat out 7 other offers!   

How the housing market is reacting to the SVB Banking Collapse

Today, I'm talking about the recent banking crash that happened with Silicon Valley Bank (SVB) and how it has helped decrease mortgage rates. For those who are unaware, SVB is a bank that specializes in providing financial services to the tech industry. However, earlier this month, the bank experienced a major system outage that left its customers unable to access their accounts or conduct transactions for several days. This crash had a ripple effect on the financial industry, causing mortgage rates to drop as a result. When a bank experiences a crisis, investors tend to flock to safer investments such as bonds. As demand for bonds increases, the yields on these investments decrease, which in turn leads to lower mortgage rates. So, if you're in the market for a new home or looking to refinance your current mortgage, this may be a good time to take advantage of these lower rates. Curious to know more about Los Angeles real estate?

Let’s schedule a discovery call HEREs://vancansgroup.com/meet-jeremiah

Real Estate Market Shift: How to Navigate the Return of Buying Power? 🏡 😎

Real Estate Market Shift: How to Navigate the Return of Buying Power?

There has been a noticeable change in the real estate market over the past two weeks, with increased activity that is not typical for this time of year. This can be attributed to a decrease in mortgage rates, which is encouraging buyers to return to the market. As fears of a recession ease, and the negative perception of the real estate market begins to shift, buyers are seizing the opportunity to purchase a home.

As a buyer, it's important to take advantage of this trend by getting ahead of the market. There is a significant amount of pent-up demand among buyers who have been waiting for mortgage rates to decrease.

30 Year Fixed Mortgage Rate for the last year.

Additionally, builder confidence has increased for the first time in 12 months, signaling a positive change in the market. As builder confidence continues to rise, it will help to create momentum for the housing market to move in a positive direction.

If you're in the market to buy a home, now is a great time to take advantage of the current market conditions. With mortgage rates declining and builder confidence on the rise, you have a good chance to find a good deal before the rest of the buyers hop back into the market.

Just Listed! Cosmetic Fixer in the Hollywood Hills

With over 800 sq feet of private patio space, this unit is a rare find at this price! Get your toolbelts ready and make this diamond in the rough your own masterpiece. This property is situated in the highly coveted Highlands Complex located in the Hollywood Hills. This corner unit gets incredible natural light that is beaming through the mature trees that surround this complex. With a great open floor plan the kitchen, dining and living room tie seamlessly together with the massive outdoor patio. The living room features a beautiful double-sided stone fireplace that opens to the living and dining areas. The large patio is surrounded by beautiful mature pine trees and encapsulated with the surrounding hills. This community has resort-style amenities which include controlled access, two heated pools, a spa, tennis court, a gym, sauna, clubhouse, dog-walking areas and nearby access to hiking trails. This unit has two side-by-side parking spaces just steps from your entry. Conveniently located and close to all of the shopping and restaurants in Hollywood yet tucked away in the hills, this property is a perfect escape from the city. Come make this property your very own!

6704 Hillpark Dr. #102
Los Angeles
$499,000 🤑💰
1 bed 🛌
1 bath 🛀
939 sqft 👣

Open Houses:
11/12 1-4pm
11/13 1-4pm
11/15 11-2pm

Offers due Wednesday 11/16 ⏰💰

Just Listed! Beautifully Designed Townhouse

JUST LISTED ! 💫 - This charming townhouse with a private rooftop patio is centrally located next to Studio City and Toluca Lake. This corner unit has been extensively renovated with a sophisticated and timeless look. With a great open floor plan, the living room with a gas fireplace and balcony ties seamlessly together with the kitchen. The tastefully designed kitchen with peninsula seating has quartz countertops and stainless steel appliances. A convenient powder room is also located on the first level. Both bedrooms are nicely sized and located on the second level. Each bedroom has its own newly remodeled bathroom and large walk-in closets. The primary bedroom with high ceilings and its own balcony has direct access to the private rooftop patio located on the third level. The primary bathroom has a custom-made white oak vanity that perfectly fits the space. Other features include bamboo floors, in-unit laundry, controlled access, 2 parking spaces, low HOA fees that include earthquake insurance, community pool, and an exercise room. Conveniently located next to all of the restaurants and shopping in Tujunga Village, Toluca Lake, Studio City and the North Hollywood Arts District. With an amazing location and easy access to the freeways, this townhouse has it all!

10926 Moorpark St. Unit #3
Studio City
$625k 🤑💰
2 bed 🛌
3 bath 🛀
1,122 sqft 👣

Open houses:
Saturday 11/5 - 1-4pm

Sunday 11/6 - 1-4pm

Tuesday 11/8 11-2pm

Offers due Wednesay 11/9

Just Sold - 8 unit Apartment Complex 👏

JUST SOLD! 😎

Just sold this incredible 8 unit apartment building on the west side of Los Angeles.  I was able to negotiate the price down $305k to get my client an incredible deal.  This building generates $380k in yearly rent and is situated on the West Side of Los Angeles.  With a growing job market, and high rental demand we knew this was going to be a great investment.   Did I mention it's a brand new build?!  Expenses on this will be low for years to come!

Buying a rental property doesn't need to be complicated!  We break it all down and make the process easy for you.   We highly recommend purchasing a multi-family property in Los Angeles.  It can generate passive income, appreciate over time and at a minimum offset taxes through depreciation.   There's no better hedge against inflation!  

Property Details

4820 S Slauson 🏡

$5,670,000 

8 units

7764 sq feet

$380k in gross rents each year

Advice For Buyer in this Market 😎

The housing market is shifting before our eyes.  National headlines say there's a housing market crash.  They are recession fears, the Fed keeps raising interest rates and the stock and cypto markets have lost a lot of value.  Well that's a lot to digest!  We all have to remember that real estate is highly localized and even here in LA we are experiencing wildly different markets.    

WATCH VIDEO

1 - Buyers need to rerun numbers as mortgage rates rise - with rates changing daily, and projected to go up, your purchasing power can change from one day to the next. Don't go falling in love with a home you couldn't afford in the first place.

2 - Inventory shortages will continue - Demand continues to outweigh the supply. I don't anticipate a wave of inventory or foreclosures to hit the market just a slight increase in inventory.

3 - Cancellations - We're seeing a high amount of cancellations which is bringing more properties back to market. This will give buyers a slight bump in choices and help flatten prices.

4 - Home prices will continue to remain high - With Low inventory and inflation, it's unlikely house prices will drop that much. I expect appreciation to flatten and for some areas of LA to decline in value. There will not be a HOUSING CRASH!

5 - Prepare for high prices on suburban homes - Buyers should realize suburban home prices have outpaced downtown/urban center home prices.

6 - Some buyers may want to consider a 5-year ARM - Adjustable Rate Mortgages have lower interest rates. A 5-year ARM is just 3.90% compared to an average rate of 5.54% for a 30-year fixed mortgage.

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Where to Find Deals 🏡

Where are the Deals?

1 - Properties that have fallen out of escrow 
2 - Stale Listings
3 - Properties that have had a price drop 
4 - Poorly marketed properties

My Take

I'm still seeing multiple offers on all of my listings just way less offers. Instead of 20 to 30 offers on a home, I'm seeing 5 to 10 offers. I could see this trend continue as interest rates continue to rise. I see this as a great opportunity for a buyer to get into a house as there is way less competition. Every market will react differently to this rise in rates. Here in Los Angeles, we still have a low amount of inventory. When it comes to good homes, there are still multiple offers and bidding wars happening. It's an interesting shift that is happening and I believe that deals are happening now due to lower competition. Houses aren't being bid up as high as expected which is good for buyers.

Inside 6101 Delphi St in Highland Park for $995k 🏡

Check out our newest listing in Highland Park! Welcome home to this charming 2 bed / 1 bath house with detached ADU. This lovely home sits mid-way up a gently sloping street that is surrounded by mature landscaping and views of the neighboring hills. This house has the perfect blend of original vintage details and modern amenities. The living room with coved ceiling and fireplace ties seamlessly together with the dining room and kitchen. The tastefully remodeled kitchen has soft close wood shaker cabinetry, quartz countertops and stainless steel appliances.

• 3 bed / 2 bath house 🏡

• 1237 sqft

• Detached ADU (guest house)

• $995k 💰

The two nicely sized bedrooms are located in the rear of the house and look out over the lush backyard that is encapsulated with mature hedges. In the rear of the property, you will find a detached and fully permitted ADU that is the perfect rental unit to create additional income.

Located in one of LA's hottest neighborhoods with easy access to the freeways, this property is conveniently located between Pasadena and DTLA. This house is close to all of the action on York and Figueroa Blvd yet feels like the perfect escape. Come make this home your own private oasis!

Inspecting a fixer

What are the three most important inspections when buying a home?

In this video we inspect a 1908 Craftsman Bungalow and we take you through the process of inspecting a fixer. To start, the most important inspections are the General, Sewer and Termite. From there we can add additional inspections if needed. As a buyer you have an inspection contingency which allows you to bring in as many inspectors and contractors as you want. This is the most important contingency because it allows you to cancel the deal if you don't like what you find or negotiate with the seller for a credit.

Buyers Agent: @jeremiahvancans

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