Scott's Real Estate Vlog

San Fernando Valley Real Estate Video Blog

What is it Like Buying with an 8% Interest Rate?

What is it like to buy a home with an 8% interest rate? You might be surprised what’s truly happening. Scott Himelstein breaks it down what buyers can expect and some tips to craft a winning offer after showing over 50 properties in 4 days recently.

What is it Like Buying with an 8% Rate?
Play Video

I recently embarked on a whirlwind adventure, showing 52 properties to four eager buyers over just four days. And let me tell you, it was a journey filled with surprises and valuable insights into the Southern California housing scene where you might be surprised what’s really happening out there.

From Long Beach in South LA County to Valencia and every neighborhood in between, we scoured the landscape for the perfect homes. But here’s the kicker – out of the nearly 70 properties I had initially identified, a majority of them already had multiple offers on the table. That’s right; it’s a competitive jungle out there! Now, let’s talk price points. We were exploring properties ranging from $800,000 to $1.2 million. And guess what? In this price range, multiple offers were the norm. But before you let out a sigh of frustration, let’s dive deeper into what’s happening in the real estate arena.

First things first, the inventory is at historically low levels. Not just in Southern California, but nationwide. To put things into perspective, in 2007, there were 4 million properties for sale across the country. Today, we’re dealing with less than 1 million. That’s a significant difference in the options available to buyers. Now, you might be wondering about interest rates. Yes, they’re hovering around 8%, making this period less affordable for homebuyers compared to early 2022 when rates were in the low 3’s. But here’s the twist – even with the higher interest rates, there are still plenty of buyers in the market. Why? Because of that incredibly low inventory we mentioned earlier.

Here’s a golden nugget of wisdom: if you’re in the market for a move-in-ready, remodeled home, brace yourself for multiple offers every single time. Many buyers are willing to pay a premium for a house that doesn’t need a major facelift. They don’t want to deal with the hassle, time, and cash required for extensive renovations. So, they opt for the convenience of a ready-to-go property. In fact, all four of our clients were on the hunt for turnkey homes, and the result was a lineup of potential buyers outside several of the homes. Imagine having to wait just to get inside and have a look! That’s the reality of the market right now.

But the challenge doesn’t end with finding the perfect home. When it’s time to write an offer, the competition goes beyond just the sale price. It’s all about the terms and conditions. We found ourselves going head-to-head with buyers who were removing their appraisal contingency, offering extremely short inspection windows (five to seven days max), and locking in a swift loan contingency.

If you’re considering buying a home in Southern California, here’s a piece of advice: sit down with your real estate agent and strategize. You’ll need to shorten your inspection, appraisal, and loan contingencies to stay competitive. Plus, you’ll need to discuss the right offer strategy to increase your chances of landing your dream home.

With the right strategy and a knowledgeable real estate agent by your side, you can navigate this wild ride and secure the home of your dreams. If you have any questions about the real Los Angeles estate market or need expert guidance, don’t hesitate to reach out. I’m Scott Himelstein with the Scott Himelstein Group. Give me a call at 818-396-3311.

Share this post

Leave a comment

Related Posts

What’s Your San Fernando Valley Home Worth?

Are you thinking of selling your home or interested in learning about home prices in your neighborhood? We can help you.

Looking for a San Fernando Valley Home?

Search the entire MLS for your San Fernando Valley home.

Post Library