The Cost of Southern California Homes Are Increasing, But so are Home Sales
Photo by Iren Key
In the last year, home prices and sales have risen in Southern California which could be due to decreasing mortgage rates.
California residents want more space and lower mortgage rates. According to DQNews, home sale prices have increased by 10% in one year.
Since the pandemic, mortgage interest rates have dropped due to the Federal Reserve Policy to stimulate the economy.
Los Angeles Times reported in 2019 a house purchased at $600,000 with a 20% down payment had a mortgage payment of $2,892 including property taxes, but at today’s rate with the same downpayment, the mortgage payment is $2,675.
Prices may decrease in the next year from where they are currently. The sale prices depend on the home foreclosures and how quickly the economy will see an uptick.
Nick Payne will be a first time home buyer in California and has been looking to buy a house in the past year.
“I was already interested in buying a house but started looking into it when some friends of mine in real estate recommended it,” Payne told Scriberr News. “Especially now with the mortgage rates decreasing, it seems like the right time.”
According to the First Tuesday Journal, in November of 2019, there were 18,300 home sales of single-family residences in Southern California. Home sales increased to 22,000 since November of 2020.
Justin DeNicola and his partner Peter Medeiros are looking to take advantage of the lower mortgage rates and buying a home in San Diego later this year.
“We’re looking at the fact that the mortgage rates are low, and it’s a seller’s market, which usually means for us they have control, but at the end of the day, we’re in a pandemic,” DeNicola told Scriberr News.
“There could be an opportunity for purchasing something that wouldn’t normally be on the market or getting it for a better value because people want to get out of their homes because of what’s going on, so we think it’d be a great opportunity,” he said.
It is unsure whether Southern California home sales will continue to rise, but many first-time homebuyers are taking advantage of the decreased mortgage rates.