Is there any better question to ask a realtor right now? Should a potential buyer jump in and buy a house now or wait for some future time when home prices are lower? This report outlines the facts of today’s market with an interpretation so you can decide for yourself what you should do based on your current situation.
Real Estate Market Facts as they are today:
- 30% of home buyers in California are First Time Home Buyers, while 70% of home buyers in California are Move-Up Home Buyers
- Interpretation- Since most of the market are Move Up buyers then home prices may stay high because they can afford a higher priced home
- Average 30 year Fix Mortgage rates are in the 4% range
- Interpretation- While this is not a record low rate, these are very low rates historically
- There is extremely low inventory in most cities in California
- Interpretation- This lack of homes creates a sellers market which gives sellers more control over what price they sell their home.
- There are more buyers today than there were yesterday.
- This may be esoteric but, it is simple math. Our population is increasing so they will need places to live which can keep prices high.
Final thoughts, regardless of what kind of market we are in people buy and sell homes every day. Some of these people do not do their research and perhaps are making an emotional buying decision and should maybe wait for a better time. There are, however, many people who are aware of market trends and they make an informed decision to buy a home that fits for their families.