How Does Summer 2023 Look for Home Sales?
Mortgage rates, which vary daily, have been stuck in the 6.5% plus or minus range. This seems high compared to last year. However, buyers have been using short term buy downs, fixed rate loans that float after 3 to 7 years and adjustable loans to help qualify. As long as rates don’t go into the 7% range, we are good this summer.
Inventory, the number of homes for sale, is very low. Total sales in Torrance were 25% less in the first quarter of 2023 compared to 2022. This drop is only due to the lack of homes for sale, not because homes won’t sell. Summer 2023 is a great time to be a seller. Prices have been rising and multiple offers have returned. Expect the number of homes to increase but the supply to stay tight, favoring sellers. Buyers have to compete again to get their offer accepted in many cases. Bottom line: this summer looks to be good for sellers and a little tough for buyers. Time will tell.
Home Owner Insurance an Issue?
State Farm and Allstate have withdrawn from writing new home owner insurance policies in CA. They are two of the biggest insurers and this will cause problems. Farmers and other companies are still writing. If you have an issue obtaining home owner insurance the state has the CA Fair Plan available for most homes but it is usually more expensive and offers less coverage. Lenders do not give loans unless the home has insurance. This is important for buyers to get taken care of at the start of escrow, not the end.
Don’t list Ray & Jon unless you intend to move!