November Market + Economic Update 11/4/2022
We are living in interesting times... domestically, globally, financially...
Rather than inundate you with stats on rates, the trajectory of the market, average days on market... I think it's time we have a casual conversation. Especially if you are considering buying a home and are uncertain if now is the time to make that decision.
The question: "Is now a good time to buy a home or investment property?"
And the answer depends.
What is your budget?
My suggestion is to find out what you're qualified for? What price range? And what would your down payment & closing costs be?
Once you know your parameters, go and look @ properties that fit your budget. See what's out there.
If there's a home that you'd like to live in, which makes sense financially, then you'll know if it's a good time to buy for you.
Is it a buyer's opportunity market right now? Yes, for the right buyers.
Are sellers getting nervous and offering major concessions to close deals? Yes.
Is it possible to get a major price reduction along with credits and repairs? Absolutely.
Are interest rates much higher than they were in January? For sure.
Will interest rates come back down in the next 18-24 months? Yes, that's what the Fed is telling us.
Can you buy a home for a discount today and then refinance in 24 months to lower your payments? Almost certainly.
Are there any guarantees in life? Other than death and taxes, none that I'm aware of.
Is Los Angeles real estate a sound investment over the long term? Based on every past cycle, absolutely.
Westside Market Stats:
Message me if you have questions about your specific neighborhood.
November Market + Economic Update
Mark, the Founder of AllOneWealth, and I, are excited to provide an economic update with valuable information, industry insight, and professional guidance on the latest key trends.
Interested in learning more about markets, inflation, QE or how you can take advantage of current investment opportunities? Schedule a call with us.
Warmly,
Adam
Mark, the Founder of AllOneWealth, and I, are excited to provide an economic update with valuable information, industry insight, and professional guidance on the latest key trends.
Interested in learning more about markets, inflation, QE or how you can take advantage of current investment opportunities? Schedule a call with us.
Warmly,
Adam
National 30-year fixed mortgage rates go up to 6.85%
The current average 30-year fixed mortgage rate climbed 5 basis points from 6.80% to 6.85% on Wednesday, Zillow announced.
The 30-year fixed mortgage rate on November 2, 2022 is up 3 basis points from the previous week's average rate of 6.82%.
Additionally, the current national average 15-year fixed mortgage rate increased 8 basis points from 5.89% to 5.97%. The current national average 5-year ARM mortgage rate is equal to 6.39%.
Mark's Take on the State of the Economy:
It’s been a while – I took a little hiatus. On 10/21/22 my wife gave birth to our beautiful son, Rome August Sauer. We are absolutely thrilled.
Given the shifts in my life, I’m going to be transitioning away from ‘weekly’ market & economic updates and focusing on monthly updates. I’ll also be posting the back log of blog posts that I’ve created over the last several months - rather than just inform you on market and economic movement and policy, I aim to also educate and inspire you with this next phase of the AllOne blogging journey.
As always, I’d love to hear from you. Please reach out with any questions or feedback – I’m always open for blog suggests as well.
Below is your AllOne Monthly Market & Economic Update by the numbers.
Interested in learning more? Schedule a call with me HERE.
Warmly,
Mark S Sauer
Market Update
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A tumultuous month filled with volatility. However, earnings and a strong technical support level gave investors the confidence to buy the market lows and drive prices back into a healthier range.
The Nasdaq struggled with big tech earnings, but still salvaged a 2.07% gain for the month. The S&P 500 gained 6.19% in monthly trading, and the Dow Jones Industrial Average outperformed with a 12.4% gain. International stocks were mixed with Developed Markets up 5.96% and Emerging Markets down -2.93%, the latter falling dramatically on Monday (10/24) as Chinese President Xi Jinping assumed a third term and immediately replaced opposition party members with loyalists.
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10-Year Treasury yields fell back from 4.25% to around 4.0% by the end of the month, falling below the 3-month yield. With the 10-year and 2-year yield curve already inverted, the 3-month inversion is another warning sign for looming recession. High yield bonds were positive, up 2.37% to move above their 50-day moving average. Inflows for high yield bond mutual funds and ETFs totaled $2.8 billion in the weekly period ended October 26th.
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Oil prices were slightly higher the last week of October after President Biden authorized the release of 15 million barrels from the Strategic Petroleum Reserve on Wednesday - completing the planned 180 million barrels release announced earlier in the year - initially keeping the price per barrel unchanged at $85/barrel. However, last week the barrel pushed up above $88/barrel for US West Texas Intermediate crude. Oil giants Exxon (XOM) and Chevron (CVX) boasted more than $30 billion in profits during the third quarter, with Exxon enjoying the biggest profits ever in its 152-year history.
Investment Opportunities
3719 S. Centinela Ave | Mar Vista - 4.5% Cap Rate
5 Units in great rental area of Mar Vista, North of Venice Blvd. 4 units are 2 BR, 1 Ba.; 1 unit is 1BR, 1Ba. 2 Story building. Each unit has hardwood floors. Some windows have been replaced. 4 car garages plus 5 spaces. Lots of upside potential. Trust Sale, sold AS IS.
Reach out to learn more.
2302 32nd St | Santa Monica - 4.5% Cap Rate
4 of the 5 units will be delivered vacant! Rare Santa Monica development opportunity just south of Pico Blvd and steps to Trader Joe's. Remodel the existing structures or build and expand. Huge 9,000 sf lot with plenty of room to build new ADU's for a total of 7 units. This is a contractor's dream - rebuild or restore and choose your own market rent tenants!
Message me to find out more.
Celebrity Listings
"Service to others is the rent you pay for your room here on earth." Muhammad Ali