Hi friends, 

I hope this message finds you and your family well and healthy. I am thankful that the hurriquake did not cause too much damage. I connected with a handful of clients within the last couple of days and no roof leaks nor water intrusion thank God! For my household, we went up on the roof and applied Henry’s roof sealant on some areas to add an extra layer of protection so no roof leaks… however I did have water intrusion on one side of our house. I believe it's due to some minor stucco cracks so this week we’ll be adding some cement to the stucco to prepare for the upcoming rainy months. Although the water intrusion did not do too much damage, it was unexpected. With that said, I am going to freshen up and reread my homeowners policy to review my coverage. Understanding your policy is crucial to avoid any future catastrophe, so homeowners, when you get an opportunity please review yours so you know your coverage incase ever needed! 

Anyhow I’ve been wanting to write to you now that kids are back at school and summer is coming to an end. The summer was HOT! And I am not referring to the weather but to the housing market. It seemed like back then during that crazy covid season where things were going as fast as hot cakes! According to Freddie Mac’s Home Price Index, since the COVID shutdown in 2020 to today, the Los Angeles metro has increased in property values nearly 40%!

Multiple offers, no appraisal contingencies, and prices going way above asking was what we saw during COVID. It wasn't until last year late Q4 right around November, December to early Q2, in January, February, where things slowed down. Speculators thought the next housing market crash was finally here. Then March hit. And so did the Dream For all Appreciation program; where it stirred the pot yet again and the market took off once more. Since March and through the 2023 summer we have experienced a very hot sellers market EVEN WITH the vulnerable and soaring interest rates spikes. 

Milk, eggs, meat, and all services in general have significantly increased in price and we have seen inflation affecting the housing market as well. Before COVID, 66% of all closed sales in Los Angeles were below $750,000.00. Today in 2023 only 41% of all closed sales are under $750k; that is a quarter difference.

What does this mean? For buyers that are anticipating more coming soon homes in the affordable price ranges it is simply not in the cards. The number of opportunities is diminishing over time. I call this the new cost of living. The point is that more and more homes are surpassing the $750,000.00. Pre COVID season finding a $500,000 single family residence in Los Angeles was doable, today not even a condo! I mean look at rents. According to LivingCost.org, an average cost for a 1 bedroom in the city is $2,239.00, a cheap 1 bedroom apartment outside the city center is running for $1716.00. Talk about a 3 bedroom apartment in the city, the average monthly cost is $3,852.00; outside the city center a 3 bedroom apartment average is $2,934.00. These standards are for apartment averages, not single family homes! 

So what's next? Well, remember that California Dream for All Appreciation program that I mentioned earlier and was in such high demand lasting only 11 days before the money was gone back in March? Well, as always, I try to stay in front of all real estate things and rumors are that this program will be available again this upcoming October. All of my lending partners are telling potential buyers to get pre-approved NOW if they want to buy a home using this program so they can complete the required online course sooner than later. This program helps buyers who have not owned nor purchased a home in the last three years with 0% down and no PMI. During the autumn and winter season things usually cool off but this program and the shortage in inventory may keep the market boiling throughout the year. 

Before I wrap things up I do want to let you know that if a property is even slightly overpriced due to the high interest rates, and even during this feisty market, surprisingly it may sit on the market and go through a couple price reductions until the price meets fair market value. Yes sellers, even if the property is just slightly overpriced. Right now for buyers, every penny counts so sellers, I am reiterating this, please be careful with over pricing. It can affect your listing a lot if you over-priced the property even if it's by $15k so please listen to your agent and don't be stingy!

With all this said I will continue to keep you updated with all real estate market trends. Know I am always here for you, your friends, and your family. Wishing you a lovely rest of the week. 

With Care, 

Linda Mendoza