L.A. real estate news and insights.
Tomorrow the Federal Reserve will announce if they will or will not raise short-term rates. My prediction is that we will see them raise rates another 25 bases point: that’s a fancy way of saying .25 of 1%.
How do I know?
I have been tracking a market indicator called the Fed Funds Futures. That indicator shows what investors are betting on. It currently shows a 98% probability that we will see a 25 bases point raise... so I'm going with that.
Do you think they will raise the rates tomorrow?
California saw a 3.1% uptick in pending home sales in August, an increase of 8% from a year ago.
Economists say home sales are forecasted to rise in the coming months and into 2020.
I think their prediction will be correct!
I can help with your real estate needs too.
Let's talk. 818-445-7953.
The market is not crashing!
However, I do see home values going down 1% - 3% in 2019.
It's a small price adjustment compared to how much home values have gone up over the last few years.
In 2018, all I heard buyers say was "home prices need to come down" and "I wish there were more homes for sale".
Now that home prices have softened a bit and there's more housing inventory, buyers are getting nervous... not happy.
Buyers see this and think the market is going to collapse.
I have news for you... there is no crash in sight.
What is happening now in the market is what home buyers have been begging for.
You should be thrilled prices are lower and you have more to choose from.
