Regular Newsletters May 8, 2023

Johnny Dragon’s May Newsletter

Happy May! I will be populating this blog post from my LinkedIn Newsletter (for those who do not have a LinkedIn account). Happy reading!

LA County Market Update

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LA County’s housing market has seen a bit of an interesting turn. While the average sales prices for residential properties dropped 6%, the number of new listings was 2% lower than in March 2023. At the same time, there was an 11% increase in the number of properties sold with average days on market falling 11% and average price per square foot seeing a small increase.

If you remember in March 2023, the CalHFA program for first time homebuyers rolled out, offering 20% down payment assistance for new buyers. This flooded the market with new buyers, thus causing existing inventory to go into escrow in March, resulting in many sales in April. My condo in Silver Lake received 3 total offers before going into escrow during Easter week, just shortly after the CalHFA program rolled out. The proof is in the numbers: The properties that were sitting on the market longer than usual all of a sudden experienced sudden buyer demand, but most of these properties sold at asking price or just a bit below.

While the CalHFA program is no longer available, there are still buyers searching for homes for the summer due to school almost being out. Families are looking to move in before August or September, usually when schools begin their fall semester.

Mortgage Fee Changes Helps People with Lower Credit Scores

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Borrowers with lower credit scores will pay less in mortgage fees for loans backed by Freddie Mac and Fannie Mae, according to the Federal Housing Finance Agency (FHFA). The new fee changes rolled out today. FHFA director Sandra Thompson clarified the fee changes, stating: “They do not represent pure decreases for high-risk borrowers or pure increases for low-risk borrowers. Many borrowers with high credit scores or large down payments will see their fees decrease or remain flat.”

JPMorgan Chase Takes Over First Republic Bank

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First Republic Bank is the third bank to experience a major failure since March 2023, causing regulators to take possession. JPMorgan Chase will gain all of First Republic’s deposits ($92 billion) and a majority of its assets. This is the biggest bank failure since 2008 when Washington Mutual experienced the same fate.

My Recent Sales

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I recently sold 2357 Hidalgo Avenue in Los Angeles for $1,725,000 (Represented the Seller). It sold for $275,000 over the asking price in 8 days! I then sold 31040 Calle Agate in Cathedral City for $605,000 to the owner of Hidalgo shortly after, making it his new home! Thank you for trusting in me Ed & James!

Active & Fit Direct

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Active & Fit Direct connects you to over 12,200 gyms/fitness centers nationwide! Find out if you’re eligible for a membership.

Super Mario Movie Reaches Over $1 Billion Worldwide

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The Super Mario Bros Movie is the highest grossing video game movie of all time! Go watch in theatres today! It was incredibly funny and entertaining.

Thank you for reading!