April is the first month of the second quarter and always marks the start of the real estate season. Daylight savings is in full swing and more and more people are looking to buy, sell, or refinance their homes. The business we start to see towards the end of April and beginning of May is usually a good indicator of how things will shape up for the summer season.
April seems to be a busy month with tax returns due, Easter holiday celebrations, and also spring break for those of us who have school age children. There are a couple more holidays/celebrations with Memorial Day weekend and also Fourth of July, however these seem to be a more carefree time to spend barbequing with friends and family rather than cooking up big turkey dinners and gift buying.
With all the busyness of the major holidays and the dark side of daylight savings behind us, the numbers for April are pointing to a much improved real estate season compared to the last few years. Interest rates are still at record lows and the home prices within Los Angeles County have dropped by about 6% in the last year. It’s no wonder that pre-approval letters for prospective home buyers have increased by about 25% for most mortgage brokerages across the L. A. area.
Refinances still make up about 78% of the mortgage business at present time with many making sure that they still get that low rate. Actually, rates have dropped so low that many home owners have refinanced twice in the last 14 months while having the bank pick up all the one time costs.
Fed Underestimated the Housing Crisis
As always, if you are thinking about either buying, selling or refinancing, this is the time to meet with your mortgage planner to have a review of your finances and home value to see what needs to happen in order to meet your goals of home ownership and also retirement.
$345,000 Medium home value in LA
$69,200 Median income in LA
3.875% for a 30yr fixed with no points
58 days is the average time a home stays on the market in LA
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