Housing Prices in West LA Are Skyrocketing - Is it Time to Sell or Refinance?
Was with a group of friends last night in Mar Vista. Seems the Real Estate story is all the talk right now. One member of the group said his home value had jumped $100,000 in 4 months, based on an online source. Most of us know better than to trust those online sources much, but in this case, the number might be low.
Stories all over town of bidding wars. Homes are put on the market at fair valuations and get offers on the first day well over the asking price. What is going on? Will it last? How does it effect You? These are some of the questions that might be going through your mind right now.
Why Are Housing Prices Going Crazy in West Los Angeles?
There are a few reasons, but as is always the case, the driver is supply and demand. There is demand right now and almost no supply of quality properties. Therefore when a good property does go on the market there is a frenzy among three groups:
- Regular folks looking to upgrade, downgrade, or just move into the neighborhood
- Investors with plenty of cash looking for long term rental properties
- Speculators hoping to jump in for a quick profit
The other big difference is interest rates on mortgages. Nobody thinks the Fed is going to keep these interest rates this low forever, but they show no signs of boosting them any time soon. This combination is creating a massive shortage of available product compared to demand.
Your House May Not Be Upside Down Anymore
With values going up so quickly, it is hard to even guess at your true value. http://Zillow.com, http://Trulia.com and http://Realtor.com all offer estimated prices, but a quick tour will show you a huge range of values on the same property. The much maligned values on Zillow.com may be the most accurate of the three.
You may want to check all of these to see where you stand. You may have felt trapped in your home. Can't sell it, because there would be no funds to buy somewhere else. Can't refinance at the current great rates because there isn't any equity and the lenders are super tight about lending qualifications. But, with this huge increase in values, you may no longer be in the pickle.
Do a quick search for your address right now. You will likely get the three websites above for the results. Click through and see what they think your home is worth. If you think you have 20% equity again (your loan is 80% or less than the property is worth), then you might want to call right now at 310-295-6213 and see about lowering your monthly payments drastically with a new lower interest mortgage. If you can easily afford the payments, you might be able to refinance to a 20 or 15 year mortgage that will really drop your interest rate.
You can do some checking on your own by using our mortgage payment calculator that you can find by clicking here. Or just pick up the phone and call. There is no cost or obligation to have a chat with us about your situation and how you might be able to save a lot of money. 310-295-6213
Another Article You Might Like The Mortgage Genius Bar: 10 Mortgage Tips for 2013