Hi! I’m Jo with The O’Key Group and here’s your northeast LA market update.
Your home’s one of the biggest investments that you’ll make. Each quarter I work hard to bring you an update that keeps you in the know. Even if you’re not looking and thinking about buying and selling this year, it’s good to stay on top of what’s happening in the housing market.
Though there has been a slight increase in inventory, it is uncertain whether that increase will stay consistent. New developments are not keeping up with the housing shortage. This creates a seller’s market which is increased sales prices and decreased days on market. This doesn’t really impact the condos and entry-level homes. Starter homes are up 9.4% over last year, while inventory is down 14.2%.
Millennial Homeownership Probability:
Marriage- Increases by 17.9%
Having children- Increases by 6.2%
Obstacles to Becoming a Homeowner:
Limited Inventory of Homes with Desired Specs- 35%
Down Payment- 28%
Access to Credit- 6%
We have had a 0.5% inventory increase over last year. Now with prices rising, it’s still better than back in 1991. I know it’s a weird date, but it helps you see that way back then wasn’t easier, which is what everyone thinks. Mortgage rates are expected to touch about 5.6% before the new home buyers leave this current market. If numbers excite you, I’ve put a little bit more down below about mortgages:
The mortgage payments on the typical home are currently 17.1% and expected to hit:
19% @ 5% Mortgage Rate
21.2% @ 6% Mortgage Rate
23.5% @ 7% Mortgage Rate
As of May 2018
(LTV = Loan-to-Value Ratio)
Millennials in General – (LTV) 89% (Down Payment)11%
FHA Loans – (LTV) 96% (Down Payment)4%
Conventional Loans – (LTV) 81% (Down Payment) 19%
VA Loans – (LTV) 98% (Down Payment) 2%
An important note is that the median rent has doubled since the early 2000’s. So it’s just good to know that rents are going up as well as everything else goes up, it’s the world we live in.
If you want to ask me any questions about if you qualify for a loan here’s a good fun tip: Work out your monthly rent, multiply it by 12 or the number of years you’ve lived there. It could add up to a down payment! Let’s talk in the near future and see if you can afford to possibly put that money to some better use than giving it away to your landlord. You may or may not qualify based on work history and all of those things. None of that’s bad, they’re just facts of where you are in today’s market and what you want to set, and future pace yourself and where you can be in the next 5-10 years.
If you want anything else answered, you can reach out and we’ll take care of all of those things for you. It’s great speaking to you all, I’m glad that you enjoyed this. We get great responses after every update. Let me know if there’s anything else; any other facts that you really are interested in knowing or stuff that you really don’t know. Give me a call, email me, text me, and let me know how you’re doing in this market, how it’s affecting you, and also if you are interested to see if you qualify for a loan, we can help out. Take care, Cheerio! Happy Home Buying!