What Would it Cost You if You Wait?

Many buyers are losing a lot of money because they WAITED. 

Yes, you read that right. Buyers today are being priced out of their desired housing market and losing the chance to grab their dream home because it took them months before making a decision. The two biggest factors for this are the increasing mortgage rates and the appreciation of the home prices. 

Because there’s still a great demand for homes (in San Ramon alone, it’s almost a 100% seller’s market) and the trend is highly unlikely to take a pause anytime soon, prices and mortgage rates will continue to soar. 

THE COST OF WAITING THIS 2022

Increased Mortgage Rates

Last December 2021, the average 30-year mortgage rate was 3.11%  which rose to 4.67% by the end of Q1 2022. It increased by 1.56% in the first quarter of this year!  The average 30-year fixed mortgage rate hasn’t risen above 5% in over a decade, but it will likely reach this milestone in the second quarter of 2022.

Increased Home Prices

Over the past three months, which had the lowest inventory on record, home prices increased nearly 10%. Nationally, home prices have hit the $200/sqft ratio, the highest in history! Rising rates, in the short term, boost demand because potential homebuyers want to get ahead of the increase, but in the long term, they reduce demand. Because the market is so undersupplied, less demand is actually a good thing. Home prices simply cannot maintain the rapid increases. Although a housing bubble isn’t likely yet, a sustainable growth rate is better and safer for the long term.

• Particularly in East Bay, both for single-family homes and condos, prices have increased. In Alameda County, there’s a 23% increase in prices of single-family homes, and 6% increase in condos. In Contra Costa, prices of single-family homes have increased by 6% while condo prices have increased by 13%. 
• The inventory that we have right now in the East Bay is still low but RISING. We do not know how long the increase will be so it’s best to act now while we’re getting more supply than a few months ago.

Now that we’re seeing a window for change, it’s the perfect time to act and make a purchase. Your success in buying and selling a home also leans on the strength of your team. If you’re still looking for a competent realtor that you can trust, give us a call at 925-415-0835!