Recently our clients have asked us more and more “Where are we in the current real estate cycle and do you foresee a correction in the near-future.” This question is a valid considering the strong market that has persisted for years, rising interest rates and the new GOP Tax Plan that reduced deductions for real estate taxes and mortgage interest.
The benchmark 30-year fixed-rate mortgage rose this week to 4.52 percent, according to Bankrate’s weekly survey of large lenders. Rates have increased almost half a percentage point since the beginning of the year and have risen for seven consecutive weeks. 30-year fixed rates are at the highest point since April 2014, when the average rate was 4.54 percent.
The end of the year is such a busy time, we hope you and your family had a moment to come
up for air and enjoy ringing in the New Year. Over the holidays inventory is traditionally low. No one wants to be bothered to show their home when family and friends are visiting and when there are so many other distractions. More importantly buyers are often out of town, waiting for their year-end bonus and the New Year to begin to start their home search. Despite the traditional holiday lull, December delivered some record high sales which we believe can be partially attributed to buyers and sellers scrambling to sell or buy before the new tax bill was enacted.
Despite the hustle and bustle of the holiday season, now is the perfect time to start laying the groundwork for a successful 2018 sale. This is especially true in Lamorinda where the “spring” market has gotten progressively earlier; school enrollment begins in the early spring which means many buyers are looking to close on their new home even earlier in the year to ensure that their child is able to attend neighborhood schools. It is more important than ever to start making your to-do list now if you want to take advantage of this typically strong early selling market.
As the calendar turns to summer it is a good time to take stock and understand how Lamorinda real estate performed over the last year. Below is a summary of Multiple Listing Service (“MLS”) data for Lamorinda residential detached home sales over the last twelve months from July 2016 to June 2017 (the prior-year comparison is from July 2015 to June 2016).
Before the calendar turns to summer and folks start to head for vacation, it is a good time to take stock and understand how Lafayette real estate has performed over the last year. Below is a summary of Multiple Listing Service (“MLS”) data for Lafayette residential detached home sales over the last twelve months from May 2016 to April 2017 (the prior-year comparison is from May 2015 to April 2016).
Inventory remains tight with the number of transactions down 14% (273 vs. 318). The average sales price is down by 2% ($1.539M vs. $1.576M), but this is a result of smaller homes being sold (the average home sold square footage was 2,580 vs. 2,728, a 5% decrease). The metric that matters most, price per square foot, is up 3% ($611 vs. $591). This is great news for Lafayette residents and reflective of the recent strong spring selling season.