California Home Sales get Largest Boost in 4 Months
March 22, 2023 | Anthony Cosenza
Recent reports showed California gets a 17.6 percent boost from January
The real estate market doldrums of late 2022 are leaving, as new data points to an uptick in activity. Per the California Association of Realtors, California home sales get their largest boost in 4 months. This is thanks to a 17.6 percent increase over January 2023 in existing home sales.
If you’re asking what may be prompting this jump, there are a number of factors. The first and likely easiest to point to is the decline in interest rates on home loans from fall and winter.
We saw rates average out at over 7 percent across the U.S. late last year to just under 6 percent presently. This is also contributing to major Southern California cities becoming more affordable this year.
Additionally, spring and summer are traditionally more active in the real estate market than fall or winter. To this point, we are seeing top Orange County homes in quality condition net multiple offers as more days on the 2023 calendar pass by.
In all, expectations from buyers and sellers are starting to shift. The “old market” from mid-2020 to mid-2022 are in the rearview mirror.
Interest rates being at 6 percent nationally and with many well-qualified buyers netting below that mark in pre-qualifications, buyers are adjusting to where monthly payments are for a home they desire. Particularly with these aforementioned rates still being very low, historically-speaking.
What does California Home Sales getting a boost mean for you? Well, folks are getting creative on home purchases. With new adjustments to FHA loan programs and creative close-of-escrow options, more people are testing the market.
As a potential buyer, there are options that can work well for you. So, if you have good credit, talking to a mortgage professional is a must. Here at Casa Bella Realty Group, we have a number of great mortgage resources for you to consult with, if you have questions.
As a seller, you can still cash out on a huge amount of equity you’ve accrued. Additionally, as mentioned above, quality homes are getting a lot of activity. So, if you need repairs, remodels, etc., we have options where you can pay for work at close of escrow!