Los Angeles California Mortgage Rates Help Buyers

Anyone who lives in Los Angeles California or the surrounding areas will tell you that homes are selling fast, really fast.  Similar to 2004-2006 when homes sold in one or two days at 5-10% over asking price. Low Los Angeles California mortgage rates are one of the main reasons  why prices have gone up 15-20% over the last 9-12 months in some Los Angeles communities. Another is many buyers who sat on the sideline the last few years are jumping in.  Everyone should be happy right?  Not necessarily.  It seems many buyers and Real Estate agents have forgotten what happened just a few years ago and many people are taking on huge risks with bidding up properties 10% over asking price.  Buyers need to remember that back in 2008-2010 we had massive declines in some neighborhoods.  While it’s good to see values go up, it’s not so good to see them go up too much since that usually precedes a sharp pull back.  And with incomes, net income after taxes, still flat or declining these gains will be difficult to sustain at current market interest rates.