The housing market is on fire!

Housing Prices in Los Angeles

The housing market is burning a trail through its way back to 2007 prices. Is it a bubble?

This is a question no one can answer with certainty. What’s certain is that there are the few elements driving the increases, including:

• Interest rates
• Inventory
• Competition

Low interest rates have been in place for some time now, and they have brought some balance to an unstable market. When these rates are coupled with constrained inventory, home prices are increasing by leaps and bounds. Inventory levels are a gauge for future values of properties, and the levels have been low since the middle of last year and continuing to shrink.

For those who thought they would never hear it again… what a great time to be a seller.

The market has been brutal to buyers. Most properties are receiving multiple offers and under value properties are receiving 30 to 40 offers. Only time will tell where the dust will settle.

Fixed Mortgage rates: New lows, again

It's hard to believe that this is still a topic... Every time I write about "rates hitting new lows," I think it will be the last time, but here we are again. According to numbers released by Freddie Mac, the 30-year fixed rate mortgage fell to 3.62 percent for week ending July 5, 2012. The 15 year fixed rate mortgage dropped to 2.89 percent.

Recent economic data for manufacturing contracted and lower consumer spending were the catalyst for the decline in the long term Treasury Bond that moved rates down.