All eyes were on the Fed today and rates increased 25 basis points. Real estate continues to be a great hedge against inflation which is why we continue to see multiple offers on well-located, well-priced properties. We see many cash buyers still circulating. In general the lack of supply nationally and in specific neighborhoods like Hancock Park will keep prices healthy.
For those choosing to obtain a loan, our trusted mortgage advisors tell us that this hike is already ‘baked in the rates’ and 30-year fixed jumbo money ranges between 5.75% and 6.3%, depending on the lending institution. Some say that rates are dropping today.
The real estate market momentum continues this week in Hancock Park with 5 homes in escrow since Monday ranging in price from $1.7 to $2.3 million. 6 others homes are pending since March 1st, 3 of which are over $5 million and looking to close escrow next week before Measure ULA takes effect, saving each homeowner at least $200k in additional transfers taxes. There were 25 sales in January and February with an average market time of 42 days. In March market the time on market was shorter, averaging 32 days on the market.
A noteworthy sale recorded this week was 226 S Windsor Blvd in Windsor Square HPOZ which started at $11.8 million and recorded at $10.5 million. The 1922 Walker & Eisen Mediterranean Revival was featured in Architectural Digest and was completely renovated in 2020. Designed by Disc Interiors, built by Plus Development. Key features included a highly coveted Larchmont Village close location, 5 bedrooms in the main house, a smart Savant system, home theater, a separate guest house with living room and kitchen, gym, showroom style primary closet, steam, lap pool and a 2 car garage.
The tax assessor measures the main house at 5,802 sq ft. It sold in 2019 for $4.993 million then again in 2020 for $5.95 million. A handsome profit was enjoyed at every turn.
If you are ready for a home, have the financial wherewithal to purchase and you have plan to hold the property 7+ years it is a great time to jump in, enjoy life and hedge against future inflation.