– ello everyone.
It’s April already. Started the second quarter of 2022. Real estate is going through some changes right now, and we’re going to look at how that is affecting the Lomita real estate market.
And stick around to the end to find out how rising interest rates and inflation might change things for you.
Now, home values are up a little, here in Lomita with median home values at $874,000. That’s up 0.73% over the last month. It’s up 1.63% over the last quarter. It’s up 10.81% over the last 12 months. And it’s up 21.66% over the last two years. And it’s substantial, 30.95% over the last 36 months. In comparison, the median home value in Los Angeles is only $798,000. In California, it’s $724,000. And for the entire country, it’s only $317,000. If you wanna find out what your home’s worth right now go to housesinsouthbay.com and get an accurate valuation.
Hello everyone. Steve Huhta here, from Century 21 Union and housesinsouthbay.com, bringing you the Lomita real estate market report for April, 2022. Now, remember to like and subscribe and especially leave a comment below, so I know what content to make that’s most helpful for you.
Now, looking back in March, we only had 12 homes for sale in Lomita, nine new homes came in the market, but 11 homes sold. Those 11 that sold, range from this two bedroom, two bath, 1,750 square foot condominium that sold for $695,000, to this 2,384 square foot, four bedroom, three bath home on a 6,988 square foot lot, that’s sold for $1,360,000.
To get an idea of where things are headed, we look at the health of the market with a comparison of supply versus demand. We measure that with inventory months of supply, which is only at 0.7 month supply right now, that means if no new homes came out of the market we would sell out of homes in about three weeks. Now, you probably already know, but we consider anything less than six months supply a seller’s market, where prices are going up and things are selling rather fast.
Now, at the beginning of the video, I said I’d go over what rising interest rates and inflation mean for you, well, it means less buying power. I know you already know that, but do you realize how much less? If you take a look at this chart, we can see that back in January when our interest rates were around three and a quarter percent, we could have bought a home for 1.1 million dollars for around $4,800 a month, and today in April, with interest rates around 5%, if we had the same payments of around $4,800 a month we could only afford a $900,000 home. And it’s predicted that by the end of the year rates may go up to 6%, which means that for that same payment you’ll only be able to afford a $800,000 home. So if you wait, you have a good chance of getting a lot less home for your money, or as you can see, paying a lot more for the same home. For that 1.1 million home you’ll be paying about a thousand dollars or more per month than you did in January, and if rates go up to 6%, you’ll be paying almost $2,000 more for the same house.
So that’s what interest rates do to your payments, but I also mention inflation, well, inflation has kind of the same effect on your purchasing power as rising interest rates, you get less house for your hardened money because your money is worth less. But this is the reason you invest in real estate, it’s like other tangible assets. If we look in the past real estate has been a hedge to inflation, as you can see throughout the last 50 years real estate’s been a good bet against inflation, gaining value well above the inflation levels. And even in economic downturns such as the Tech Bubble in the eighties or the Great Recession in the two thousands, real estate has held almost even with inflation. Now, if you wanna learn more about interest rates, or thoughts on the real estate bubble, or what you should do with rising inflation, check out one of the other videos I have to get more in depth information.
Bye for now.