Is the white-hot housing market ready to cool off in Riverside County?
RIVERSIDE COUNTY, CA – Housing demand in Riverside County and across the state remained strong in March – and median home prices set record highs – but the effects of rising interest rates are closely watched, according to a report released this week by the California Association of Realtors.
“March sales data continues to suggest strong buying interest and a solid housing market, as the effects of rising mortgage interest rates won’t materialize for a few months,” the vice-president said. CAR President and Chief Economist Jordan Levine in a statement on Tuesday. . “While the Federal Reserve is expected to announce two consecutive half-point interest rate hikes in May and June to fight inflation, interest rates will be high for the foreseeable future, which will negatively affect the housing demand and will reduce housing affordability in the coming months, but the effects may not be visible until the second half of the year, as many of the homes that are closing or will close were traded before the sharp rise in prices. rate.”
The 30-year fixed mortgage interest rate averaged 4.17% in March, down from 3.08% in March 2021, according to Freddie Mac. The five-year adjustable mortgage interest rate averaged 3.19%, down from 2.78% in March 2021.
In Riverside County, the median sale price of an existing single-family home in March jumped nearly $100,000 to $620,000 from a year ago during the same period when the price was 535 $000, according to CAR
The March 2022 award set a record, but the county wasn’t alone. Statewide, 25 counties set new records in March, CAR reported.
Overall, the median home price in California hit a new high in March at $849,080, surpassing the previous high of $827,940 set in August 2021. A surge in sales of high-end luxury homes was the main factor of this jump. The share of million-dollar home sales rose for the second consecutive month, reaching 32.9% in March, the highest level on record, CAR reported.
According to data from CAR, the following six Southern California counties hit a new record high median selling price in March:
One figure that showed a slowdown was year-over-year sales. Compared to March 2021, Riverside County existing home sales were down 9.5% last month. The trend was seen statewide, but it was the smallest drop in eight months, according to CAR
Despite sky-high prices and rising interest rates, CAR Chairman Otto Catrina said buyers may have reason to be optimistic as housing inventory continues to flood the market.
“An increase in active listings for the first time since before the pandemic should give consumers more options and alleviate some of the upward pressure on home prices, which bodes well for potential buyers.” , did he declare.