I remember 1985… One thing you can count on in life is Rates going UP! The Bond Market has been willy nilly over the last couple of weeks causing rates to be very unstable. The sentiment out in the world is that rates must go up in short time to stimulate other areas of the economy. This may occur at the expense of the Housing market.
Who will this affect? I believe it will affect Sellers more than Buyers. Buyers can absorb somewhat of a rate increase since they are so low to start. But Sellers will feel the brunt because our market will quickly turn from a sellers market of Low Inventory to a buyers market as home values must adjust down to entice a buyer to pay more in interest.
Sellers WILL have to make price adjustments downward as inventory starts to increase and buyers become more cautious on what they are spending.
Today, we are still in a normal market, one that both buyers and sellers can achieve what they want. Sellers can sell for a good profit and Buyers can buy with very cheap money at 4% interest in most cases.
Don’t tempt fate and try to “time” the market…. The market wins EVERY time.
Call us to discuss your real estate options today (951) 734-4300 or info@yvonnearnold.com