Dare we say the market is ‘normalizing’?
Q4 2022 was a time for social re-engagement after nearly 3 years. Our local Larchmont Family Fair was well attended as were many joyful holiday parties. What a great community we call home!
The real estate market frenzy started to downshift due to interest rate headwinds (4th consecutive interest rate hike was Nov 1) and limited inventory available to purchase. Local Hancock Park real estate prices remain above pre-pandemic levels. Many homeowners are either ‘mortgage free’ or enjoy a mortgage rate under 4% thus restricting inventory available for purchase. Why? The cost of renting or buying an alternative property at a much higher interest rate coupled with capital gains taxes give Sellers pause. Expect to see days on market increase and prices to hold given these dynamics of demand relative to supply. Renovated homes will continue to be chosen first as it has been the trend for the last decade.
Expect longer market times for Hancock Park real estate especially for larger homes in need of tender loving care, a volatile stock market, rate increases (number, amounts & duration is anyone’s guess) and potential layoffs which will influence overall market sentiment and affordability. Real estate professionals will have new opportunities to express creativity as all adapt to changing market conditions and new tax laws. Local expertise is invaluable.
Measure ULA passed in the most recent election cycle which will impact all real estate sales $5 million and above across LA county (see previous blog post). The macro-economic environment and local changes are occurring frequently, and we will continue to bring you relevant information and perspectives here and in person.
If you are thinking of making a move let’s meet to discuss your unique circumstances. We have guided and negotiated through major market changes since the early 1980s by offering intelligence, deep market knowledge and wisdom to position both Sellers and Buyers best to achieve their objectives.
It is a good time to be a sell if your life circumstances call for it and a good time to buy for the mid-to longer term. The key to both is planning and executing wisely!
Note: as of this post, mortgage interest rates dropped a bit for the first time since September 2022 and we are seeing an uptick in showing activity and offers. In Hancock Park we are also see 11 homes on the market over $10MM, some of which are real treasures!
Contact the Loveland Carr Group to get more