Welcome to the August 2018 SoCal Real Estate market update!
During the months of June and July we saw a steady increase in inventory across Southern California but, July was also the month that the industry recognized that the market has officially started cooling off nationwide after many years of fast growth.
We’re Entering A “Balanced” Real Estate Market
Over the last 5 years we have frequently talked about how the market was almost always in favor of sellers as many homeowners were able to sell their properties for more than their asking prices.
This was especially common in Los Angeles where average homeowners gained $175,000 in profit when they sold their homes in 2017. (Source – Curbed Los Angeles)
Since an increase in mortgage interest rates and the Trump Tax Laws we’re seeing the Real Estate market shift to a more “balanced” market of buyers buying and sellers selling.
Will this cool off last long? It’s anyone’s guess. The future of the Real Estate market in the United States all depends on several factors including:
- If the Federal Reserve will continue to raise interest rates. Two more rate hikes are predicted for this year (Source – npr.org)
- If the Trump Administration enforces their new tax laws. Signed into law in December 2017, the Trump tax laws have brought major changes for everyone in the USA including the wealthiest Americans to the average worker’s paycheck.
- If other factors like the trade war will effect Real Estate for the long term. We’re still in the early days of the trade war so it’s still to soon to tell how it’s going to affect Real Estate in the U.S.
One thing is for certain, even though you may have to pay more for a home over 30 years than you would had you bought a home just one year ago, it’s possible that you may find a home with far more options in 2018 including square footage, better locations and amenities since there is more to choose in homes for sale now than ever before.
Buy Or Sell Homes In Southern California
At the Fred Sed Group we take pride in having the opportunity to serve the SoCal Real Estate market for many years. Our knowledge of this market makes our team of Realtors assets when it comes to finding the very best properties for you or helping you sell your home when the time is right.
To learn more about our services, contact us seven days a week by calling us at (800) 921-9231 or connect with us online.