Through the day of new year eve, Lake Arrowhead had snow, wind and 17 degrees … stopping in time for a cold and sunny morning… at the Rose Parade – 40 degrees in Pasadena. A good time for mountain folks to be indoors, fireplace burning, hot coffee and friends.
ON BALANCE, WE ARE CURRENTLY IN A VERY GOOD POSITION.
Stan Humphries, chief economist for Zillow said “Housing definitely came back to earth over the second half of 2014, and we welcome and expect to see more of the same as we look ahead at 2015. A slower-moving housing market is inherently more stable, more balanced between buyers and sellers and more sustainable over the long term. We’re ending 2014 on a good note, and this momentum will continue.”
Last week in Monday on the Mountain we summarized 2015 economic forecasts applied to Lake Arrowhead;
- An 8% increase in home sales,
- Home prices gaining 4-5% through the year
3. Mortgage rates will end the year at 5% — thought to start rising at mid-year.
RISING MORTGAGE RATES OFFER A WINDOW OF OPPORTUNITY —FOR SELLERS AND BUYERS.
Anticipating rising rates, selling and buying early in 2015 is a win-win.
JANUARY TO JUNE, SOONER, NOT LATER;
for a more attractive sell and buy price.
A homebuyer taking on a 30 year mortgage of $417,000 -close to the average in Lake Arrowhead – faced monthly payments of $1,960 at 3.87% annual interest (2014). At 5%, the forecast for year-end 2015, the same $417,000 mortgage will have a payment of $2,239, up $279 a month. Makes sense – win-win – to sell and buy early in the year.