- Interest rates are back into the low to mid 6s. Fed left rates unchanged at last week's meeting.
- Housing supply is slowly increasing towards its summer peak.
- Housing demand has been steady, but global uncertainty will no doubt impact some big purchase decisions.
- Savvy home sellers and buyers may see an opportunity during the uncertainty.
When some duck, others dive! If you could elect to buy or sell a home during global uncertainty, a fluctuating stock market, and a volatile interest rate market, or wait until a less chaotic period, you'd probably choose the latter! However, many home sellers don't have that luxury. Whether it's a necessary move for work, a divorce, or another life event, many simply don't choose when they buy or sell a home. With some overpriced homes lingering on the market, savvy buyers see an opportunity. Sure, 30 year interest rates have climbed into the low and mid 6s this week, frustrating many who were inspired by the sustained dip below 6% of recent weeks. A forward-thinking opportunist could take advantage of the current uncertainty, buy while half the market seems to be taking a break, and catch the next rate dip to refinance. Anecdotally, my current listings have witnessed a small drop off in showings, but there is still demand for well-priced homes. Could a prolonged confrontation in the Middle East impact home prices? It's not likely it could make a big impact. With so much equity in the average home, even a distressed seller who's lost a job isn't in a rush to sell, nor facing a short sale or foreclosure (foreclosures and short sales represent just 0.2% of all OC homes on the market), so it's highly unlikely we'll see a substantial drop in prices like the 2008 crisis. Additionally, we're in a much tighter credit environment these days, so today's homebuyers are much more qualified that their 2008 counterparts.
If you're currently considering waiting for more certainty in the market, call me to discuss. Let's compare the benefits and risks of waiting versus jumping in.
Matthew
(949) 677 3618
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