September 25, 2022 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

Home Prices In Southern California Have Dropped And May Continue Falling

Higher Mortgage Rates Are A Factor 

Mortgage rates have continued to rise as Southern California heads closer to the Fall season and that has had an effect on home prices in the area as reported by The Los Angeles Times.

Rising mortgage rates are hardly a local phenomenon, but are definitely starting to change the once strong seller’s market into more of a buyer’s market. For a change, buyers have had to start to drop their prices to try and attract an increasingly reluctant pool of buyers into considering a purchase. 

Carl Izbicki, a real estate agent at RE/Max Estate Properties in Los Angeles said, as quoted by The Los Angeles Times, “When my buyers look at homes, they have some time to think about it now. It’s a normal market.”

According to Forbes.com, mortgage rates are two points higher than they were at the beginning of the first quarter of the year and that was after the rates had already increased more than they had at any other time in the last 28 years. 

Inflation is part of the reason that mortgage rates are increasing after the consumer price index also rose to a historically high level. Part of the reason for this is the Federal Reserve’s attempts to combat inflation by raising the benchmark interest rate. 

Joel Kan, an economist at the Mortgage Bankers Association (MBA) said, as quoted by Forbes.com, “Higher interest rates resulting from the Fed’s efforts to combat inflation, as well as the persistently high rate of inflation, are causing stresses for households and businesses.”

Mortgage rates, for the average 30-year, fixed-rate mortgage were as high as 5.81 in June but have gone even higher in late August. The current 30-year, fixed rate mortgage is 5.90% according to Bankrate.com. 

Countries all over the world are having to do the same to combat inflation but in the United States, financial experts predict a slowdown. Wharton business school professor Jeremy Siegel said, as quoted on CNBC’s “Squawk Box Asia, “I think we only need 100 basis points more. The market thinks it’s going to be a little more — 125, 130 basis points more. My feeling is we won’t need that much because of what I see as a slowdown.” indicating that the Federal Reserve will only have to raise the consumer price index by 100 additional basis points. 

Siegel points out that, according to CNBC, housing prices have dropped and in fact have “gone down by a record amount exceeding any six-month period.” These are one of the key indicators of whether inflation will continue to rise or slow and Siegel believes that this shows that a slow down is on the way.

Related Posts

Permanent Homeless Shelter Slated for West LA Armory

September 24, 2022

September 24, 2022

Three-story building would include 167 beds By Dolores Quintana A permanent homeless shelter with 167 beds is being planned at...

Site Cleared for 123,000 Square-Foot Office Campus Near Venice

September 23, 2022

September 23, 2022

Glencoe Avenue development set to span three acres By Dolores Quintana Developer Mass Equities bought the site in 2019 with...

LA County Supervisor Holly Mitchell Endorses Erin Darling for Los Angeles City Council

September 23, 2022

September 23, 2022

Mitchell becomes the latest in a long and growing list of Westside elected officials to endorse the Venice local! By...

LA Councilman Gil Cedillo Endorses Traci Park in CD-11

September 23, 2022

September 23, 2022

Councilman praises Park, calls her “a fighter that will stand up for both the unhoused and housed.” California Lt. Governor...

Metropolitan Water District Completes Pipeline Repairs Ahead of Schedule Impacting Marina del Rey Residents

September 23, 2022

September 23, 2022

More than 4 million people affected by shutdown can now resume outdoor watering Residents and businesses in portions of Los...

Venice Surf Shop Reportedly Burglarized on Camera

September 22, 2022

September 22, 2022

Footage posted on social media over the weekend documents burglary at Mami Wata on Abbot Kinney By Dolores Quintana Video...

Kimama Cafe Hopes to Open Brick-and-Mortar Restaurant in Mar Vista or Culver City

September 22, 2022

September 22, 2022

Sisters Marine Lulu and Millie Nene Nabeshima fundraising for venture By Dolores Quintana Kimama Cafe, a vegan restaurant, is working...

Venice’s Baby Blues BBQ Seeking New Location Following Fire

September 22, 2022

September 22, 2022

Fire end of last month damages Lincoln Boulevard restaurant By Dolores Quintana Baby Blues BBQ in Venice has unfortunately closed...

Famous Italian Singer Zucchero to Play Beverly Hills Theatre on Sept. 30

September 21, 2022

September 21, 2022

Zucchero will play at Beverly Hills’ Saban Theatre, one of several American stops on his World Wide Tour  By Susan...

‘Sameday Health’ Launches Monkeypox Testing at Venice Beach Location

September 21, 2022

September 21, 2022

Get a same day appointments and 48 hour test results for covid-19, Flu, and Monkeypox testing now available at the...

This Is My Brave Comes to Santa Monica’s Broad Stage for Live Show Shining a Light on Mental Illness and Addiction

September 21, 2022

September 21, 2022

September 25 show features community members who live with mental health challenges telling their stories through poetry, music, comedy and...

Chevy Takes Over Electric Avenue in Venice to Celebrate National Drive Electric Week

September 21, 2022

September 21, 2022

Thursday, September 22 from 11:00 a.m. – 7:00 p.m. PST.   As part of Electric Car Week, on Thursday, September 22,...

Lights Remain out at Venice Fishing Pier!

September 20, 2022

September 20, 2022

A major electrical system repair will take to get the pier illuminated once again.  By Nick Antonicello  The lights at...

17 Cats Perish, Firefighter Injured in Fire at Local Feline Boarding Center

September 19, 2022

September 19, 2022

Saturday morning fire at CatPlaceLA remains under investigation By Sam Catanzaro 17 cats died over the weekend following a fire...

Legal Wrangling Continues Following LASD Search of Supervisor Sheila Kuehl’s Santa Monica Home

September 19, 2022

September 19, 2022

Hearing set for Thursday relating to LASD corruption investigation By Sam Catanzaro Last Wednesday, The Los Angeles County Sheriff’s Department...