Home Buying in 90064>Question Details

pattymatt2003, Home Buyer in Los Angeles, CA

House Price in 2013

Asked by pattymatt2003, Los Angeles, CA Sun Jan 6, 2013

Fed QE may finish by the end of 2013. Does it have any effect on house price in west Los Angeles? Any opinion or analysis is very welcome. Thank you.

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I will try my best Bernanke answer.
It is my understanding that the Fed QE has been extended and is now tied to specific job growth not a date. That being said, Fed QE is not sustainable and it will end. When it does, interest rates will go up. How much will depend on how healthy the banks and the economy are. But each point that the interest rate goes up will reduce the buying power of the purchaser, this will have a chilling affect on buying as I believe that salaries and wages will NOT be going up to compensate, consequently it may also have the affect of flattening home values. As is the case now, there will still be cash buyers that will not be affected and therefore certain areas will see a lesser impact than others.
1 vote Thank Flag Link Mon Jan 7, 2013
In my opinion, the end of QE would be the begining of a rise in mortgage interet rates. Although most projections are for home prices to rise in 2013, the rise of mortgage rates have the potential to lessen the current demand for homes. This may have a negative impact on future home price increases after QE has ended. I firmly believe 2013 offers the best opportunity for both buyers and sellers while rates are still at historical lows.
Happy New Year!
1 vote Thank Flag Link Sun Jan 6, 2013
Los Angeles County Real Estate Market is on on a very positive upswing. Extremely low inventories and home prices rising rapidly in most areas. I think 2013 is going to continue to be an aggressive year for price rises. If the Fed ends the quantitative easing it will only signal a strengthening economy which will outweigh any slight uptick in interest rates, so we should continue to see this rising trend for some time. Hopefully by the end of next year we should see all homes that were underwater, be back in great shape which will add more sellers to the market place and help with the low inventories.
0 votes Thank Flag Link Wed May 29, 2013
West L.A. neighborhoods and Beach Cities have seen appreciation in values.
-Low Mortgage Interest Rates
-Low Housing Inventory
-Low ratio of short sales/REOs in area
Attached is 2013 Forecast with updates:

Gail Mercedes Cole
0 votes Thank Flag Link Wed May 29, 2013
If it does end, it'll likely have slight positive impact as the positive signal of an improving economy outweighs a slight up tick in interest rates. As long as we don't go back into another financial crisis, home prices will continue to climb from years of low supply as home builders retrenched from 2008-2012.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Mon Jan 7, 2013
To the extent that the Fed's QEs have kept mortgage interest rates low, the effect of them finishing could cause rates to drift up a bit, possibly causing some downward pressure on prices. That's my thought, at least. I hope it helps.

Marty Walker
eXp Realty
0 votes Thank Flag Link Mon Jan 7, 2013
Los Angeles County Real Estate Market is on fire right now! Extremely very little inventories and home prices rising rapidly in most areas. I think 2013 is going to be an amazing year and definitely a great time to invest.

Have a great day,
Heather Paul, Realtor
Coldwell Banker
0 votes Thank Flag Link Mon Jan 7, 2013
I believe in strong market in California!!!
Many sales, prices going up!

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0 votes Thank Flag Link Sun Jan 6, 2013
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