By MICHELLE LYNCH
If you’re worried about what’s next for home prices, experts suspect they will rise through 2028.
The Home Price Expectation Survey (HPES) from Fannie Mae is a survey of over 100 economists, real estate experts, and investment strategists. The HPES projects a 2.35% rise in 2024, 2.70% rise in 2025, 3.67% rise in 2026, 4.06% rise in 2027 and a 4.15% increase in 2028.
While the market has fluctuated over the past year, La Mirada experienced an overall rise in residential property values. According to the California Regional Multiple Listing Service (CRMLS) – a premier MLS network with over 110,000 professionals – the median price per square foot of residential properties in La Mirada was $504 in January of 2023. It then increased to $518 by August 2023, and grew even higher to $566 by February 2024.
So a big ‘yay!’ there for all my fellow La Mirada homeowners.
I should also note that La Mirada has seen record low inventory levels this past year. According to InfoSparks, a service provided by the CRMLS, in February of 2023, 16 new homes hit the market which made a total of 37 active listings. This past February, 25 new listings hit the market, making a total of only 27 active listings. If we go back five years, we had 94 active listings in La Mirada, a significantly higher level of inventory. This major shortage has contributed to the rise in home values, which is something I am sure most of you have heard us real estate agents go on and on about.
Mortgage rates hovering just above 7% have been quite the barrier for most consumers, resulting in a lack of local activity in our market. As we progress further into 2024, and if — that’s a big if by the way — we see a drop in interest rates, we can expect inventory levels and housing demand to increase as well. This is one of the stranger markets I’ve seen in my career so I cannot stress it enough, make sure you are working with or talking to professionals who know what they are doing.
I’ll be back with another update soon, love you La Mirada!
Michelle Lynch, Reliance Real Estate Services, DRE#01476112
