Our spring market is underway, and there are a few things buyers and sellers need to know.
Unfortunately for buyers, inventory is at a 20-year low, and there are a few reasons why. First of all, builders stopped building properties during the last recession and simply went into survival mode.
Second, many cities throughout California are downzoning. For example, some of the properties that have R-4 zoning designation, like those in La Providencia above Glenoaks, were previously zoned for 10 units, but now they’re zoned for three units. In other words, builders can’t build apartments or condominiums in these cities, so they’re only building luxury properties. Builders also haven’t kept up with buyer demand.
Another factor is low interest rates. They’re the lowest they’ve been in the past two or three years, which means buyers have more buying power now than they previously did. They can buy more expensive homes with cheaper mortgages.
This is why, despite the low inventory, now is a good time to buy. You can lock in a 30-year fixed mortgage for a very low rate. For sellers, now is a great time to sell as well.
Whether you’re buying or selling, give me a call so my team and I can get you started on the right foot. If you have any questions about our market, feel free to reach out to me as well. I’d love to hear from you.