Mr. Murrieta is out of the office and Mr. Maui is in full effect. I am writing this client letter from my first ever trip to Hawaii on the stunning island of Maui. As my vacation winds down and I kick the sand off my toes, I find myself missing Murrieta and my real estate clients. We have a great community in Murrieta and our surrounding cities. While Hawaii has been an amazing experience, I am eager to jump back in to our real estate market, which is currently hotter than the beautiful sands of Kannapali beach.
In June, our market was jumpstarted by exceptionally low interest rates. After last summer we saw a retraction in real estate and prices continued a slow drop until around late February of this year. This slower start to the 2019 real estate market combined with aggressive political pressure on the Fed caused rates to drop incredibly low, which is great news for you. I just had a couple of buyers get 3.875% on a conventional 30 year loan and 3.25% on FHA and VA loans. Those are the lowest rates since late 2016.
If you purchased in the last 3 years with a VA or an FHA loan with any kind of PMI, I strongly suggest you explore the benefits of refinancing or streamlining. It won’t be right for everyone, but you could potentially save $200-$400 per month. This is a rare second opportunity to get some of the lowest rates ever seen. I don’t do loans but I can give you the names of some of the best in the business if interested.
These amazing rates are turning the heat up on our market. While I am not seeing the frenzy of constant multiple offer situations, my listings are selling very quickly. The fastest moving homes are in the $430,000 to $485,000 range and entry level homes. There are also a lot of active move-up buyers, people who are trading in their smaller homes for larger, higher quality properties. That segment has been exploding since the new conforming loan limit increased to $484,350 earlier this year. I expect this trend to continue all summer and anticipate a very solid real estate year if rates stay reasonably close to current levels.
Along with stunning sand beaches, warm waters, and Mai Tai’s, Hawaii has given me the opportunity to reflect on how thankful I am for the wonderful clients I have had over the last 17 years. I truly appreciate the trust you place in me. Just today I had clients from three and five years ago contact me to buy and sell homes, and they were willing to wait until I get back in town to start the process. That means the world to me and my family. Thank you very much for all referrals of family members and friends over the years!
Stefan West, aka Mr. Murrieta.