Low Interest Rates Keep Housing Market Going

Posted: 5/16/2019

Recently lowered interested rates have boosted California’s housing market this past month, with home sales staying level after a strong February and March. According to the California Association of Realtors, the median home price jumped from $534,140 in February to $564,820 last month, a 5.9 percent increase.

Not all areas saw an increase, however. In Southern California, Los Angeles, Orange and San Diego Counties saw home value decline. Active listings have jumped 22% compared to last year, with many homeowners feeling the market is close to peaking.

“The median price has been softening since it reached a peak last summer, and March’s year-over-year price increase was the smallest in seven years,” said C.A.R. senior vice president and chief economist Leslie Appleton-Young. “The flattening home prices, coupled with low mortgage rates, bode well for housing affordability and may bring more buyers who may have given up back to the market.”

The 30 year, fixed-mortgage interest rate averaged 4.275 percent in March, down from 4.45 percent in March 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate also declined in March to an average of 3.83 percent from 3.65 in March 2018