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Falling Mortgage Rates Are Bringing Buyers Back to the Los Angeles and Beverly Hills Real Estate Market

Falling Mortgage Rates Are Bringing Buyers Back to the Los Angeles and Beverly Hills Real Estate Market

By Christophe Choo Posted Sep 19, 2024 Latest Updates, Market Activity, Real Estate Advice for Buyers & Sellers, Real Estate Articles, What I'm Reading

Falling Mortgage Rates Are Bringing Buyers Back to the Los Angeles and Beverly Hills Real Estate Market | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

If you've been holding off on listing your home in Los Angeles or Beverly Hills due to high mortgage rates, now might be the perfect time to reconsider. With rates finally coming down, buyers are starting to re-enter the luxury real estate market, eager to take advantage of improved borrowing conditions.

After months of high mortgage rates that kept many potential buyers on the sidelines, the recent cut to the Federal Funds Rate by the Federal Reserve has set the stage for even lower mortgage rates. While the Fed doesn’t directly control mortgage rates, their decision influences broader economic conditions, which in turn affects mortgage rates. As additional cuts are expected, mortgage rates could fall further, creating a surge in buyer activity across high-end markets like Beverly Hills, Bel-Air, and Brentwood. This is a critical opportunity for sellers to capitalize on renewed interest in prime Los Angeles real estate.

Lisa Sturtevant, Chief Economist at Bright MLS, notes that declining borrowing costs are driving more buyers back to the market:

"A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market."

More Buyers, More Competition – Why This Matters in Los Angeles and Beverly Hills

Luxury markets like Beverly Hills and Los Angeles are already seeing increased buyer activity as mortgage rates fall. As rates decrease, buyer demand naturally increases, as more people are able to afford homes that were previously out of reach. This heightened competition can result in multiple offers on prime properties, quicker sales, and potentially higher selling prices.

According to the National Association of Realtors (NAR), home sales increased in July following several months of declines. This trend is a positive sign for luxury homeowners in Los Angeles looking to sell. More buyers in the market create a sense of urgency, and high-end homes in exclusive neighborhoods such as Holmby Hills, The Bird Streets, and Beverly Hills Flats are particularly attractive when demand is high.

Edward Seiler, AVP of Housing Economics at MBA, expects this momentum to continue:

“MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”

What This Means for You as a Seller in Los Angeles and Beverly Hills

With falling mortgage rates encouraging more buyers to enter the market, it’s an ideal time to prepare your home for sale. Los Angeles is known for its wide range of luxury properties, from modern architectural masterpieces in Hollywood Hills to grand estates in Bel-Air. With more competition among buyers, your property could sell faster and potentially at a higher price as demand increases.

Whether you own a high-end condo in Westwood or a sprawling mansion in Trousdale Estates, this current window of buyer interest is an excellent opportunity. The uptick in buyer activity also suggests a shorter time on the market, which is always advantageous in competitive luxury neighborhoods like Brentwood and Pacific Palisades.

Bottom Line

As mortgage rates continue to drop, the luxury real estate market in Los Angeles and Beverly Hills is seeing a surge in buyer interest. This increased demand presents a fantastic opportunity for sellers to list their homes and attract motivated buyers. If you're thinking about selling your luxury property, now is the time to act. Let’s connect and get your home ready to capitalize on this wave of buyer demand.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value

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