Yes, interest rates are up, but they are still considered overall not that high. And, at this point, the market for prices has come down enough to compensate for the higher rate. The other factor that is keeping the real estate market in the Bay Area fairly stable is that inventory is so incredibly low, there are not very many homes on the market, so that provides a sense of stability, the market didn’t become flooded with inventory.
Yes, inflation is a factor, although it seems to be leveling out.
Yes, Twitter and Meta and whoever else are laying off employees.
Yes, there are also currently more jobs than people seeking employment. Albeit, maybe not all of the available jobs are what people are seeking, but there are still a lot of jobs out there and an opportunity to lock in a job in a less competitive job market, that may have in the past been harder to obtain.
So, just some food for thought. For those with a stable job and feel financially secure, it’s still a good time to buy, regardless of the increase in interest rate, since the prices have come down to compensate for the rate. Now that the home prices have softened, and the competition is mostly gone, I am seeing more buyers come out that could not afford to buy in the hot market, taking advantage of being able to lock in a home, as opposed to when the market was hot, prices were high, and these buyers just could not compete.
Some buyers that do not have the highest paying jobs now have an opportunity to squeak into homeownership. For those buyers who have stable jobs and feel financially secure, it may be a good opportunity to lock in a home, while prices are soft and buyers are more in control of negotiations and such.
I have found over the years that taking the oppportunity to buy when most people are not buying, really pays off in the end.
On the flip side, in my opinion, the only reason to sell in this market, is to have the opportunity to get a contingent sale through and also buy low and lock in the next home at a lower price. And, often when the market is hot, a buyer who has to sell a home in order to buy, just can’t even get their offer accepted. This would be a time in which more sellers would likely be open to negotiations and taking a contingent offer if they have no other options.
Otherwise, it’s not a great time to sell…unless there is a real need to do so.
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