According to Statista, single-family luxury homes in Los Angeles spent an average of 103 days on the market in the later months of 2019. Some industry insiders have predicted that 2020 will be a good time to buy a luxury home in Southern California, especially in the $2 million to $10 million range.
But the COVID-19 outbreak has influenced every segment of the homebuying market, including luxury homes. You can find homes with significant price cuts in many areas in Los Angeles and Orange Counties, including properties with prices cut up to 10% or more since mid-March 2020.
Some mortgage rates, like 30-year fixed-rate VA loans and 15-year fixed-rate VA loans, have decreased slightly following the Federal Reserve Bank’s lowering of its interest rate to zero on March 15, 2020. However, other mortgage rates, including conventional 30-year home loans and 15-year fixed-rate conventional mortgages, have increased even with the basic Fed rate being literally at zero. Even FHA mortgage interest rates have increased slightly, with approximately rate increases of .1 to .33% observed after the Fed slashed its rates on March 15.
So if you’ve been looking for a luxury home to buy, now may be a good time, especially in the $2 million to $10 million range if you’ve sold your home elsewhere. If you need a mortgage to buy your property, you will definitely want to work with an experienced home mortgage and a real estate professional to find the right home to buy. You do have a lot of choices right now and can look for the home you want in the right neighborhood, with the best mortgage deal. Virus fears shouldn’t affect your home search and mortgage process: every mortgage and real estate professional is working to conduct business virtually, including virtual home tours and signings.