A Letter From Your AgentApril, 2023
Happy Spring, Everyone!
We are so excited the sunshine and warm weather have returned, so it can start feeling like Southern California again! With the weather change, we have also seen a positive difference in the Real Estate market. The interest rates have come down, prices have stabilized, and inventory remains tight. At the beginning of March, we saw interest rates drop by 3/4 of a point; this was directly related to the financial collapse of Silicon Valley Bank. Since then, interest rates have fluctuated between 6 and 6.5%, which is better than the 7% interest rate we saw at the end of February.
The two main reasons inventory levels remain low are:
1. So many homeowners locked in incredible interest rates during 2020/2021 and, therefore, have no desire to move
2. The constant rain impacted the number of new listings, as many sellers were waiting for the rain to stop before they put their homes on the market.
We’ll have to wait and see what April brings. Hopefully, the sunny blue skies will inspire a change in homeowners, and we will start to see more on the market. Overall, the market has stabilized with prices leveling out; we are entering a more normal market, something we have not seen for many years. Buyers are out there shopping, finding homes they like, and making reasonable offers, while sellers are less greedy, and homes are actually selling!
As you know, I aim to add more value to our friends and clients, and last month, I talked about the six programs that give you the information you need to make well-informed decisions regardless of your real estate needs. The first program I want to highlight is our first-time home buyer program.
First-time home buyers must understand the process of buying a home, know the benefits of home ownership, how it helps them create long-term wealth, and create a plan to buy a new home in the next few years. Historically, home prices go up 4% a year. So over the next ten years, homes will be an excellent investment. We’ve also seen monthly rents reach record heights. How do you stop your rent from going up? Buy a house! If you get a fixed interest rate, your home payment will never go up. And if interest rates do come down, you can do a no-cost refinance and lower your monthly payment. When was the last time you heard your landlord say, “I’m gonna give you a discount on the rent”? It’s crucial for new homebuyers to understand that each month when they make their mortgage payment, a portion is going to pay down the principal. This means they’re increasing their equity in their home. Over 5 to 10 years, this can add a significant amount to a buyer’s net worth. When did you ever hear a landlord say, “Thank you for being my tenant these last seven years, I’ve made so much money, I’d like to give you $10,000”? If you do have this unicorn landlord, please send me their contact information!
Another thing to know is that every time you make a monthly payment, part of that goes towards the interest, which is tax deductible; this is one of the best gifts we have living in the US. The government actually helps you pay for a house by giving tax deductions. How much of your rent is tax deductible? Also, if prices go up by 4% a year, how much will you gain in 5 or 10 years? This is why when families retire, those who own their home have a networth of at least 20x more than those who rent.
I have a goal to help up to 20 families over the next two years enjoy the benefits of homeownership. This program provides them with all the information they need to get started and understand the process. Before the program is over, we’ll create a customized plan for each buyer so they know exactly what it will take to make homeownership a reality.
Let’s help our friends and loved ones create wealth through real estate. We can’t wait to share this information, so please let us know who you think would benefit from his program!
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30700 Russell Ranch Rd Suite 200
Westlake Village, CA 91362