Housing Market shift?? To be or not to be?
Many buyers are hoping that home prices are coming down. Are we seeing a housing market shift? If they are seeing anything to support that scenario at this time it is the normal seasonal pattern. The heaviest listing months are March, April and May. The peak inventory hits every August. Overpriced listings will either come off the market or reduce their price by the fall. When overpriced listing reduce the price and eventually sell it gives the appearance of falling prices. For Market Info Click Here.
That being said, interest rates have been climbing since the election. Partly due to the shift of investor money from bonds back to stocks. Interest rates have moved from the high 3’s to the low 4’s. As long as the economy improves a quarter to half point should not be a problem but if the rates go up much more many buyers will be left in the dust and the market will slow down. Orange County and CA in general has some of the worst affordability charts right now. Only about 12% of the population can buy a median priced home.
The last report I got from economist Steven Thomas, said to expect only a 2% appreciation in the housing market in 2017. That was before the current interest rate hike. To sum it up many of us are worried about the affordability ratio in our area and certainly if the rates go up a full point then we are expecting a HOUSING MARKET SHIFT with longer selling times and possible price drops.
Buyers should still buy while they can get the low rates because a 1% rise in interest rates is equal to a 10% shift in price. So if you are payment driven buy now!
Call Ron Buck and his team for expert representation of both buyers and sellers.
Ron Buck Group, Keller Williams Realty
RonBuckGroup.com or 949-456-0505