I was absolutely amazed with the number of real estate signs up in the West Ranch Communities this weekend. Apparently, there are over 120 homes for sale in the Stevenson Ranch area according to several real estate web sites including the ones on our banner advertising.
There are four homes for sale on my street alone! It appears that the market is slowing quickly as inventory has been building for many months. The real question is, if the FED keeps raising rates will there be a rush for the exits? The Federal Reserve may be looking to get the FED Funds rate to 5.50%. What will that do to the folks with ARM’s, especially those that have over extended themselves? I’m not sure if we’ll see a re-play of the early 1990’s but the days of double digit annually gains may be over for awhile.