INTEREST RATE UPDATE (4TH QUARTER 2022)
It’s no secret that interest rates have sky rocketed this year. One year ago, real estate analyst were forecasting the 30 year fixed mortgage to be just under 4.0% and look at where we’re at now. The last time interest rates were the high was in 2002. Can you believe that?
The question is, How are interest rates affecting home values and the current real estate market? As the graph above shows, interest rates have not been this high since May of 2002. This rise in interest rates has definitely put a damper on the current purchasing power for potential buyers out there looking to buy a home like yours. Believe it or not though, there are still buyers out there that want to own their own piece of California. It’s true, this rate hike did knock out a big chunk of potential buyers’, but there was and still is so much demand from buyers out there. You can look at it this way: the market is simply going back to the pre-pandemic activity levels that we saw in 2019 and before.
Homes are taking a little longer to sell but the good news for sellers, at least for now, is that home values are still high. That’s why if you’re thinking of selling, now is the time! Think about it, you can still get top dollar for your home now and then have an abundance of options on your next purchase. In today’s real estate market there are so many more homes on the market for you to choose from than there were just 6 months ago. If you’re thinking of upgrading or downsizing this is a great time to do it because you’re not having to offer $50K-$100K over asking price just tyour offer considered.
INTEREST RATE UPDATE (4TH QUARTER 2022)
It’s no secret that interest rates have sky rocketed this year. One year ago, real estate analyst were forecasting the 30 year fixed mortgage to be just under 4.0% and look at where we’re at now. The last time interest rates were the high was in 2002. Can you believe that?
The question is, How are interest rates affecting home values and the current real estate market? As the graph above shows, interest rates have not been this high since May of 2002. This rise in interest rates has definitely put a damper on the current purchasing power for potential buyers out there looking to buy a home like yours. Believe it or not though, there are still buyers out there that want to own their own piece of California. It’s true, this rate hike did knock out a big chunk of potential buyers’, but there was and still is so much demand from buyers out there. You can look at it this way: the market is simply going back to the pre-pandemic activity levels that we saw in 2019 and before.
Homes are taking a little longer to sell but the good news for sellers, at least for now, is that home values are still high. That’s why if you’re thinking of selling, now is the time! Think about it, you can still get top dollar for your home now and then have an abundance of options on your next purchase. In today’s real estate market there are so many more homes on the market for you to choose from than there were just 6 months ago. If you’re thinking of upgrading or downsizing this is a great time to do it because you’re not having to offer $50K-$100K over asking price just tyour offer considered.
