2024 predictions:
6.1% Mortgage bankers association
6.3% National Association of Realtors
6.5% Fannie Mae
6.8% Realtor.com
LA County's Property Valuation Skyrocket To $2 Trillion, Marking 13 Years Of Uninterrupted Growth.
The net value of property in Los Angeles County jumped 5.91% from last year to nearly $2 trillion, according to the county assessor's office.
It's the 13th consecutive year that the overall value of all taxable properties included in the more than 4,000-square-mile county has gone up, according to the Los Angeles County Assessor's 2023 Annual Report. The assessor's office estimates that it will collect $20 billion in property taxes to fund public services such as schools and medical care.
Pending home sales drop to lowest on record
Pending home sales fell this fall to the lowest level since 2001. Pending deals dropped 8.5% year-to-year as the National Association of Realtors index fell to 71.4, the lowest mark reported since the trade group began tracking the metric in 2001.
My Take: There will be huge pent up demand in 2024.
Source: National Association of Realtors and The Real Deal
Fannie Mae now allows 5% down payment on 2-4 unit properties... It was recently 15% - 25% down.
Fannie Mae has lowered their required down payment for owner-occupied, multi-family (2-4 unit) properties from 15% - 25% to 5%. This means you can buy a property with 5% down, live in one unit, and rent out the other 1-3 units.
The new policy took effect on November 18, 2023 and applies to several Fannie Mae mortgage types including conventional and renovation loans.
If you’ve wanted to buy a home but haven’t been able to figure out how to save enough for a down payment and meet your monthly mortgage payment requirements, your time has come.
Source: Crosscountry Mortgage
The median price of an existing home sold in October has increased 3.4% from October 2022.
The national median price of an existing home sold in October was $391,800, an increase of 3.4% from a year ago ($378,800). Prices rose in all regions of the country.
These annual price increases have been getting larger for four straight months.
Roughly 28% of homes sold above list price.
Source: CNBC
Manny Pacquiao's real estate shake-up: Watch the video!
Manny Pacquiao... what happened here?
This Mediterranean-style home has 5 bed/5.5 bath and 4,273 sq. ft. of living space.
The 2-story home features an open layout, high ceilings, a gourmet kitchen, a pool, and a spa.
Asking price: $4,500,000
Selling price: $2,000,000
Cooler monthly inflation report pushes mortgage rates even lower
Mortgage rates fell again today, 11/14/23. The average rate on the 30-year mortgage fell 18 basis points to 7.40%.
The bond market rallied after government data showed inflation was lower than expected.
Wall Street has started to lower its expectations for more Federal Reserve rate hikes ahead.
Source: Diana Olick from CNBC
Jennifer Aniston's former LA home from her Friends days: Now on the market!
Buy the home that Jennifer Aniston lived at while filming "Friends."
The property features a main residence, pool house, A-Frame guest house, a hillside bungalow, and panoramic views.
Asking price: $2,595,000
Cash Is King: 43% of Luxury Home Purchases Are Paid for in Cash, Up From 35% Last Year
Who cares about high-interest rates when you are buying your home in cash?!?
About 43% of luxury homes that sold in the third quarter of 2023 were purchased in cash, up from just 34.6% a year earlier.
By comparison, just 28% of non-luxury homes that sold were bought in cash, little changed from the third quarter of 2022.
Source: Redfin
Fed holds off on rate hike for second straight meeting
The Federal Reserve left interest rates unchanged on Wednesday, the first time in nearly two years that the central bank paused rates over the course of two consecutive meetings.
While some have interpreted the latest pause as a sign that the Fed is nearing the end of its rate hikes, inflation remains stubbornly above the central bank’s 2 percent target, and the labor market is hotter than officials would like.
Federal Reserve Chair Powell said the strength of consumer and small business finances may have been “underestimated” as spending remains strong.
Barring any major news stories over the next 45 days, I'm anticipating a rate hike at the Fed's December meeting.
Source: The Hill
16.6% of escrows were canceled in September, a new high since October last year
A cocktail of high mortgage rates and high home prices has driven potential buyers to back out of deals at the highest rate in a year.
Monthly pending home sales that fell out of a contract in the US for the month of September notched 16.6%, the highest since October 2022 when mortgage rates surpassed 7%.
Of the 50 most populous metro areas analyzed, cities in Florida were found to have been hit hardest by rising deal cancellations in September. Jacksonville, Orlando, Tampa, Fort Lauderdale, and Miami all saw deal cancellations above 20% of pending home sales. At the top of the charts was Atlanta, with 24.4% of home deals that fell through.
Source: Business Insider
