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What Up With Home Prices?


For the last couple of years, California, like much of the nation, has experienced a frenzied housing market. Coupled with historically low interest rates and historically low inventory, our real estate market saw frequent bidding wars, multiple offers well-above asking and rapidly increasing prices throughout the state.


With inflation and rising mortgage rates, we are now seeing the market slow down a bit, allowing homebuyers to take a breath and reimagine their home searches.


But although the market is relaxing a bit, there is no expectation that home prices will suddenly drop significantly, Most experts agree that home prices will continue to rise year to year, but will return to single-digit increases which is a similar to pre-pandemic conditions in the state. Here’s another way to look at it: Prices are still expected to rise when compared to the prior year—just not at the unprecedented rate that we experienced during the last couple of years. Whether you are looking to purchase or invest, real estate remains a good investment.


TAKEAWAY FOR BUYERS

With most of the crazy market activity in the rear-view mirror, buyers are in a better position to take a little more time in their home search and to make reasonable offers with their contingencies in place. Interest rates are higher than during the pandemic, but lenders are offering great packages including ARMs and buy-downs that may keep homeownership possible for many Californians. If you need a referral to a great lender, let me know. I also have great resources for VA buyers. Click here for more information.


TAKEAWAY FOR SELLERS

Although inventory has increased, a strategically-priced, well-prepared home remains a valuable commodity in this market. Talk to Victor, Elizabeth or Melissa, your neighborhood experts, for all the details regarding the market in your area.

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