Los Angeles June 2022 Market Update

Hi, everyone! Hope you're having a fantastic summer. Ana Mendoza here. I am way late. It's the 11th. Don't kill me. I am here to give you your year-over-year market update for the month of June. It obviously is gone. We are literally in the middle of July and enjoying this summer, enjoying just the trips with the kids and things at home and things at work here and just chatting with several of you about the changes on the market that are happening in the market with the raids and the market shifts that are happening, which were bound to happen. Shifts happened. Market goes down, market goes adjusts. It comes back up and that's just the nature of real estate. It is the best investment that you can make for yourself and your family over all and so we're here to give you some insight about that.

The year-over-year market update is focusing on homes that have sold in the city of Los Angeles for the month of June, so from June 2021 to June 2022. And based on what the market has dictated, these are the analytics. So there were 19 less homes on the market compared to last year, 334 homes and 315 this year. The average sales price did increase by about $10,000 from 687 to 697. And then the average timeframe of when the escrow timeframe is basically increasing, you are seeing actually the longer escrows.

Not all lenders, like the partners that we work with, can close escrows within 16 days. So it's really important for you as the buyer to really do your research and partner with somebody that does a great job on the real estate side, which would be by hiring our team, but also partnering with a great mortgage broker lender, direct lender. And we have great recommendations of partners, people that we partner with and we do recommend for you to get your offer accepted and be able to close with the guarantee within the timeframe that is going to make your offer appealing. Not necessarily be in the highest offer, but coming in with the best terms.

There was a decrease in the mortgage rates compared to the past two weeks. So we are right now from my understanding in the mid to high fives. So what happens with the mortgage rate drops, it means that your purchasing power or the power for you to purchase is more. So if in fact, and just to go based off hard numbers here, you were pre approved for 500,000 and the rate is 7%. When the mortgage rate drops to 6% or 5.5%, potentially you can afford a little bit more than the amount that you got pre approved for and then it just offsets. So if it increases your purchasing power is less. The affordability goes down or it will go up. Right now it has gone... Basically you can afford a little bit more right now at this specific moment.

So if you want us to connect you with somebody that can give you some insight on mortgage rates, please reach out to us. But basically those are your analytics for the month of June, that from June 2021 to June 2022. We have several things going on. We are working on a lot of projects for not just giving updates to our clients because they're a lot of people are moving out of state. They want to know what is my equity. Can I come up with a game plan so I can set myself up to sell and then purchase out of state? We help you with that and give you insight on that and we're really efficient at making that happen. So if you have any questions and I hope that this info was at value, please reach out to us. We are happy to answer any questions. Have a fantastic Monday.