How Does The Fed Rate Increase, Affect, Our Real Estate Market?
From the desk of Jamie Pearson
Something happened today that hasn’t happed in many years, the Fed raised the prime interest rate .75 bases points. I could hear the collective gasp from buyers and sellers all around LA over what is now, 6%, mortgage rates. I know it’s a bit of a shock, but as a 40+ veteran of real estate sales, I thought I might put this in perspective.
So I have been selling Los Angeles since 1981. Many of you hadn’t taken your 1st breaths so humor me for 3 minutes, while I explained the amazing things I have seen in this 40 year journey.
Real estate always wins….always. It maybe 2-4 years from now but sure as the world turns, there’s a day in the very close future that if you own any kind of real estate, you will be ecstatic that you had the smarts to buy when all the noise said “don’t”
Owning a home to live in is the smartest investment you can make. I have purchased property in every market cycle there has been. In 4 of the last down markets I bought a home. Every single one of them made me money, money to pay for a wedding, buy an apartment buildings, pay off debts and around the corner, retire. My 1st home in 1984 had an interest rate of 14%….adjustable and I made $100K all while living in it, using it and building my wealth for me and not a landlord.
Lastly, Our team at PCREG has over 90 years of combined experience, right now that is an amazing skill set to have at your disposal. We are highly trained in home pricing, marketing and wait for it……..negotiating. Now that’s a word you haven’t heard in a while, right. Unless you think negotiation means how much over the asking price can I pay. Just this week we negotiated a $225,000 reduction in a sales price plus $15,000 credit for closing costs. This was not a tear down, this was a prime property in the Sherman Oaks hills.
These are the days of opportunity and I/we are here to help you get the very best out of today’s market as a seller or buyer. Have questions about what’s going on in real estate? Pick up the phone a call me, I would love to get deeper into the market with you.