Why Now is a Great Time to Buy a Home in Los Angeles

Why Now is a Great Time to Buy a Home in Los Angeles
You're reading that right. It really is a great time to buy a house. What you've been waiting for the last couple of years is here; the market is finally in your favor.
 
Months ago, if you went to an open house it would be crawling with people eager to be new home owners. A bidding war would ensue and if you were very lucky and flush with all cash, you would win. Times have changed, interest rates are up and inflation is high.
 
So why is it a good time to buy?
 
Home prices are down across the board. Where there once were bidding wars, there are price reductions. While that's not the case for every property - our sale in Beverlywood had multiple offers and sold over asking - lower sale prices and price reductions are happening a lot now. Without the feeding frenzy, buyers have a real chance of getting a home they want to live in, that they have the means to buy, and doesn't require a massive remodel.
 
But what about interest rates?
 
We've said this a lot over the last couple of weeks. "You date your rate, you marry the house." If you spend $2 million on a house that was reduced from $2.8 million, you can always refinance to get a better interest rate, but you can't get that $800,000 back. Plus, there's just not as much competition so if you have your finances in order, now is the time to get serious about buying a home. And we emphasize now because once spring comes, there will be more people looking.
 
In addition, interest rates have gone down in the last week. According to CNET:
"For a 30-year, fixed-rate mortgage, the average rate you'll pay is 6.84%, which is a decrease of 40 basis points compared to one week ago. (A basis point is equivalent to 0.01%.)"
"The average rate for a 15-year, fixed mortgage is 6.22%, which is a decrease of 24 basis points from the same time last week." and
"A 5/1 ARM has an average rate of 5.54%, a downtick of 8 basis points compared to last week. "
 
We should also remember that historically, about 6 percent is on the low side. In 1981 mortgage interest rates went up to an all-time high of 16 percent, in 2000 it was about 8 percent.
 
Honestly, we don't know what will happen from now until the new year, but we do know that competition and home prices are down. If you want to talk it over with us, just give us a call!

Recent Blog Posts

Stay up to date on the latest real estate trends.

What's Being Built at Westwood and Olympic in West LA

The site of the old Wally's building is under construction

Why Now is a Great Time to Buy a Home in Los Angeles

Interest rates may be up but prices are down!

Los Angeles Housing Market Update

A lot is happening across Los Angeles with new construction going up all over town and talk of a recession on the horizon. We were wondering what it all means for Los … Read more

The Best Things to Do in West Los Angeles in August

We love West Los Angeles and here at Heyler Realty people often ask us to share some of the fun things to do in West LA that we’ve discovered. So we compiled a list of… Read more

What Rising Interest Rates Could Mean for West Los Angeles

Interest rates went up again a half point, the largest increase in 20 years. Consumers are already hurting with rising gas and food prices so what does it mean for hom… Read more

West Los Angeles Homes for Sale – New Real Estate Listings

It’s been a busy time for us at Heyler and we have several great homes for sale in Los Angeles – from Cheviot Hills to Westchester to West Hollywood. They include a ne… Read more

How to Change Your Life in 2022

The last couple of years has been challenging to say the least. But they’ve also been a time of change, growth, and renewal for many of us. People quit their jobs, mov… Read more

Meet Heyler’s Newest Team Member

We’re excited to welcome our newest agent – Aileen Hoffer Smollins – to the team at Heyler Realty! Aileen came to Los Angeles from Long Island in the 90s looking for a… Read more

History of Heyler Realty and West Los Angeles Real Estate

A meaningful part of the community since 1927, Heyler Realty was one of the first businesses on West Pico Boulevard.

Let's Connect

You've got questions and we can't wait to answer them.