I hope you are having a great week, and I hope you are ready for a beautiful weekend!
I know this market presents some challenges, but I have seen worse! If you are having a tough time convincing a buyer that now is an excellent time to buy, you can talk about a few more things.
Approximately 12.9 million American households were formed from January 2012 to March 2022, but just 7.6 million new single-family homes were built.
Single-family home construction is running at the slowest pace since 1995.
From 1960-to 2010, US Built on Average 1.55 Million Homes – From 2010 to 2022, we have averaged around 950K Homes per year.
We have about 15% of the inventory we need to have to have a balanced market. We should have 1000- 1200 listings for a balanced market in Santa Clarita, and we have between 125-150 on any given day.
Interest rates had averaged 4.092% from 2010-to 2019 leading up to the Pandemic. Interest rates averaged 6.292% from 2000-to 2009, leading up to the Mortgage meltdown and our last recession. Real estate prices generally move higher in a recession (unless it is a “Real Estate recession” like the last one), and interest rates always drop during and after. Another option is a 5/7/ or 10-year fixed rate for lower interest rates.
Buyers can always refinance when rates drop, and they will, as here is what has happened in the last four recessions.
July 1981 to November 1982 – Interest rates dropped 3.00% and 1 year later they were .40% lower = 3.40% Lower
July 1990 – April 1991 – Interest rates dropped .50% and 1 year later they were .65% lower = 1.150% lower
March 2001- November 2001 -rates dropped .40% and 1 year later they were .70% lower = 1.1% lower
December 2007 -June 2009 rates dropped .80% and 1` year later they were .70% lower = 1.50% lower
Recession 2023??? LOL!
What more do you need to know. Low inventory means prices will continue to rise for the foreseeable future. Interest rates have been higher for many years, and values still increased. Housing prices are increasing, and rates will fall when we hit recessionary times.
I love giving you the tools, so please feel free to refer me whenever you get a chance. LOL!
Interest rates have improved slightly all week. I still don’t believe that we made up for the crap show rates were last Friday, but we are trying. Baby steps! The good news is that rates are not a factor and the important part is that your clients buy before rates and prices go any higher!
30-year Government Loans (FHA / VA) are in the low to mid 4’s
Conventional Loans up to $647,200.00 – mid to high 4’s
High Balance Loans $647,201.00-$ 970,800.00 are in the mid 4’s to low 5’s
Jumbo loans above $970,801 are in the low to high 4’s +. We can do high 4’s and low 5’s with as little as 10% down. We can do 1-year findings on these too!
5/1, 7/1, 10/1 Arms are in the high 3’s and low 4’s!
Bank statement loans – They are available with 10% down again! 5-6ish + depending on down and credit score.
Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the high 4’s.
0 down loans are in the 5’s – 620 credit score minimum right now!
0 down Jumbo to $975,000.00 – 680 credit score – call for a quote
Private Money lenders – hard Money Loans – 35% down!
No Ratio Loans 30% down
Debt Service Coverage loans with as little as 25% down
Bridge Loans – are typically 5.49 – 6.49% with limited fees – But they get you where you need to go!
Interest rates are subject to change without notice! Above are LA County Loan Limits.
I will be around all weekend if you have any questions or someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 xt. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!