February, 2022…yes rates are on the rise! Not surprisingly based on what most credible lenders and money managers have been sharing since Christmas. How does this affect the market?
I am of the opinion that it will have little effect at present, but, after another two or three rate hikes down the road, it may begin to have an effect. My go to lenders inform that in sales today, the folks buying homes have the needed income and initial down to afford the homes they are buying. Additionally, supply is extremely limited, especially in the entry-level-home-buyer category. Buyers are hard pressed to win an accepted offer on a SFR at a price under 630K, with many of these homes still needing much cosmetic improvement attention. Of course, seller are celebrating the tremendous activity on their offered homes…multiple offers are still abundant and closing prices are still mostly above listed prices, even though most are listed above “comparables” pricing. Surprisingly, most of the appraisals are also coming in at or very close to the purchase price….even though many buyers are waiving the appraisal contingency just to compete in winning the acceptance!
In this highly competitive market, it is a great advantage to have a LOCAL, experienced agent representing you…one who knows and understand the local community – all the more reason to include me on your list of possible representative agents! I know the North County! Please feel free to reach out anytime – 760-271-8581
Appreciating each opportunity,