Prices went up 6.4% in the City of Los Angeles (according to Zillow). This is pretty much the same for all Southern California metro areas. Are home prices finally peaking? It’s hard to say. Zillow still predicts another 5.8% increase in the next year.
With rising rates, and reported falling home sales, this prediction might be a bit optimistic. Still, with rising employment attracting many people into the area, the demand for homes should keep prices from falling. So, if you are thinking of buying a home or investment property, it will only get more expensive if you wait. I’ll be happy to see how much home you can qualify for, it’s a free service and there is no obligation.
Rising home values have prompted a number of homeowners to call me to find how they could get some of that appreciation out of their home. A cash-out refinance is the cheapest loan available and may have some tax advantages over other types of loans.
Yes, refinance rates will probably be higher than the current rate on your home, but they are still historically low. The prediction is for rates to eventually get near 6% for fixed-rate home loans, and even higher for variable-rate equity lines of credit. Today, it is still possible to get a fixed-rate home loan in the mid to high 4% range. Call me and we can work through some numbers to see what option is best for you.
Note: Free appraisals are available for some loans. Contact me for details and for any other real estate or mortgage questions you might have.