May 18, 2024

Market Trends, Interest Rates, and Affordability in the San Fernando Valley

The San Fernando Valley has long been a desirable place to live, with its beautiful scenery, great schools, and diverse population. However, in recent years, the Valley has become increasingly unaffordable for many people.

Market Trends

The San Fernando Valley housing market has been on a steady upward trend for the past few years. In 2022, the median home price in the Valley was $850,000, up from $750,000 in 2021. This increase in prices has been driven by a number of factors, including:

  • A strong local economy
  • Low interest rates
  • A shortage of housing supply

Interest Rates

Interest rates have a significant impact on the affordability of housing. When interest rates are low, monthly mortgage payments are lower, making homes more affordable. In recent years, interest rates have been at historically low levels. However, the Federal Reserve has begun to raise interest rates in an effort to combat inflation. This is likely to lead to higher mortgage rates in the future, which will make homes less affordable.

Affordability

The combination of rising home prices and interest rates has made housing in the San Fernando Valley increasingly unaffordable for many people. In 2022, the median household income in the Valley was $82,000. This means that the median home price is now more than 10 times the median household income. This is well above the national average of 6.4.

What does this mean for you?

If you are thinking about buying a home in the San Fernando Valley, it is important to be aware of the current market trends. You should also factor in the potential for rising interest rates and the impact that this could have on your monthly mortgage payments.

Call to Action

If you are struggling to afford a home in the San Fernando Valley, there are a number of resources available to help you. You can contact a housing counselor or visit the website of the California Housing Finance Agency (CalHFA). These organizations can provide you with information about down payment assistance programs and other resources that can help you make homeownership more affordable.

To speak with a real estate professional about your specific needs and goals, call Zeev Perez at 818-445-6909.

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