Real Estate and Mortgage Rates Going Up or Down, what do you think?
You can read article after article and still be not know what to think, it is real estate and, in my opinion, there are to two things that major factors that has and will affect whether prices will go up or down.
1. Demand, Now, I sell real estate in Southern California and I have been selling real estate in Southern California since 1980 and unless inventory increases (number of houses on market for sale) and the number of people looking to buy decreases, demand is high for the home coming up for sale.
That’s not to say that if a house is over price. That it will sell.
2. Interest rates, this past year, interest rate hit over 7.25% and the house market stalled, not because historically the rate was extremely high, but because the raise in the interest rate was done so quick that buyer did not have time to adjust from the lows 2%, 30-year mortgage rates to rates over 7%.
Now, based on the number of homes that are on market now and what I believe the number of homes coming on market this year, it will not meet demand, and that prices will go up
I do believe that interest rate will come down, maybe to around the 6% rate, causing the demand for homes that come on market to increase.
So, if you are looking to buy a home, then start, if you haven’t already, get pre-qualified and be ready to make an offer on a home that fits your needs and budget.
I personally do not believe that waiting for prices to come down or rate to get back under 3% is a good idea.
Now, that’s only if you’re really want to own a home of your own.
Here are a few articles you can read on about what they forecast for the real estate in 2024
Thinking of Buying or Selling, Call me at (909) 226-3551
It is true that renting can be easier, letting the landlord be responsible to do repairs and maintain the property, but it will never be your own home and you will never stop paying rent.
Steve Olmos
Selling real estate in Southern California since 1980
