20th Anniversary: Residential Real Estate Then and Now

October 31st, 2014

This year Brandywine Homes celebrates its 20th Anniversary as a homebuilder and developer in Southern California.  Join us this week as we look back at our history over the years.

1994: Housing began its comeback as buyers snapped up bargains following a long downturn. “It may not be enough to entirely lift Los Angeles out of its economic quagmire,” the Los Angeles Times reported in June 1994, “but, for now, the quickened pace is providing hope for the once-moribund housing market. The percentage of listed homes that sold throughout Los Angeles has nearly doubled — from 19 percent to 34 percent — with the bulk of the increase attributable to single-family homes.” However, rising mortgage interest rates threatened to scuttle the recovery. Interest rates on a 30-year mortgage averaged about 8.04 percent in June; by October, they’d hit 9.01 percent, their highest level since 1991.

2014: As the residential real estate market continues to rebound from the housing slump that began in 2008, the market for new inventory remains strong. Several California markets have seen significant inventory growth as the median price of an existing single-family detached home hits $464,750 — the highest since 2007. Nationally, sales of new single-family homes have surged, reaching the highest level in more than six years. The National Association of Home Builders/Wells Fargo index of builder sentiment has reached its highest level in nine years, reflecting the general optimism surrounding home building. Lower-than-expected mortgage interest rates, hovering around 4.3 percent, have helped fuel the recovery and mitigate the slower pace of job, income and wage growth.

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