Selling Your Home in Los Angeles and Beverly Hills: Don’t Let These Two Things Hold You Back
Selling Your Home in Los Angeles and Beverly Hills: Don't Let These Two Things Hold You Back | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
Many homeowners in popular areas like Los Angeles and Beverly Hills, CA, who are thinking about selling, have two key things holding them back. First, they may feel locked in by today's higher mortgage rates, and second, they worry they won't be able to find something to buy while supply is so low in the competitive market. Let's delve into each challenge and provide you with some helpful advice on how to overcome these obstacles, with a special focus on the unique real estate landscape of Los Angeles and Beverly Hills.
Challenge #1: The Reluctance to Take on a Higher Mortgage Rate
In Los Angeles and Beverly Hills, where home prices tend to be higher than the national average, many homeowners have taken advantage of historically low mortgage rates in recent years, which have allowed them to secure loans at less than 4%. However, as the real estate market evolves, the current 30-year fixed mortgage rates offered to buyers in these areas are now closer to 7%. Consequently, some homeowners are hesitant to move to another property with a higher borrowing cost, leading to what experts call the mortgage rate lock-in effect.
The Advice: Waiting May Not Pay Off
While some experts predict that mortgage rates may gradually fall as inflation cools, it's essential not to solely rely on these projections. The real estate market can be unpredictable, and in areas like Los Angeles and Beverly Hills, where demand is high, home prices are back on the rise. If you're considering selling your home, moving now could allow you to capitalize on current home prices before they potentially increase further. And if the experts are right, and rates do fall, you can always consider refinancing later to take advantage of lower rates.
Challenge #2: The Fear of Not Finding Something to Buy
In competitive markets like Los Angeles and Beverly Hills, the reluctance of many homeowners to take on a higher mortgage rate has resulted in fewer homes coming onto the market. This limited housing supply has made it challenging for buyers to find suitable properties. As a result, potential sellers may also be hesitant to list their homes for fear of struggling to find something to purchase in a tight market.
The Advice: Broaden Your Search
If you're worried about finding your next home in Los Angeles or Beverly Hills, it's essential to consider all your options. While single-family homes might be your preference, looking at other housing types, such as condos, townhouses, and newly built homes, can provide you with more choices. Additionally, if your work situation allows for remote or hybrid work arrangements, you may be able to explore areas that you hadn't previously considered. By widening your search radius, you may discover more affordable options and opportunities to find your dream home.
Instead of being overwhelmed by the challenges of selling in a competitive market with higher mortgage rates, focus on what you can control. In the vibrant real estate markets of Los Angeles and Beverly Hills, having the right guidance is crucial. By partnering with an experienced professional who knows the ins and outs of these areas, you can navigate the waters and find the perfect home that meets your needs and financial goals. So, if you're thinking about selling, don't let the current market conditions deter you - take advantage of the opportunities and start your journey with confidence.