January Home Sales And The Local Real Estate Market
As your local Simi Valley Real Estate Team we are seeing competition in the real estate market like we have never seen before. In fact, home sales are expected to increase another 6.6% with prices rising another 2.9%. This is of course on top of the already record-breaking highs that we saw closing out 2021. Demand is clearly still far outweighing inventory, and it is causing bidding wars within hours of listing a property. This is creating a very difficult market for any homebuyer, but particularly for first time homebuyers who may be on a more limited budget.
However, another factor for first time homebuyers to consider is that rental rates are expected to rise another 7% over the course of 2022. If these buyers are struggling to get into the marketing now, they will also struggle to continue to pay their rent. It creates a very frustrating and vicious cycle. Luckily, with our experience and expertise we have helped our clients land their dream homes despite this difficult market. We understand that first time homebuyers don’t know what they don’t know, and we are here to help them every step of the way. The majority of the current real estate market is made up of millennials, those aged 25-35 as they are in the prime age bracket for a first-time home purchase or ready for that long-term family home.
Millennials need to be aware that mortgage rates are expected to hike up throughout the year and should be aware of how this will affect their buying power. Many first-time homebuyers do not realize how a small change in the mortgage rates can dramatically affect their payments. If you need the best Simi Valley Real Estate Team to help you navigate this difficult market our team is here to help!