Inventory is still low and home prices are expected to continue to drive. These are huge factors when we look at what the market may be looking like in the coming months. Hi, I’m Tanja Odzak, Our East Bay Home brokered by eXp Realty, and let’s take a look at what experts have to say about how all this is going to affect the market and your ability to buy or sell a home.
The NAR says, “While higher short term interest rates will push up mortgage rates I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30 year fixed mortgage rate to continue to rise, although we aren’t likely to see big jumps that occurred over the past few weeks.” Inflation is driving this rise in interest rates, and as long as that continues we will continue to see a similar rise in interest rates. Now Freddie Mac says, “History suggests that when rates rise, there is an initial bump in home prices, as many move quickly to buy a home before rates increase further. But after that period, home prices slow. Freddie Mac analysis shows that a 1% increase in mortgage rates results in home price appreciation that is four percentage points lower. For instance, a 1% increase in mortgage rates would change home price growth from 11% to 7%.” This means that though homes will continue to appreciate, we won’t see the high speed increase like we have seen in the past. That’s what the experts are saying we will see in the market, reach out to my team if you have any questions about the market or where it may be going.
And ask me about my tiered home selling plans where you get to pick which real estate services you want and the fee you pay… offering you simplified and transparent choices! Tanja Odzak, Our East Bay Home AND eXp Realty and I’m always here to help. Reach out anytime even if you’ve just got questions.
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
Why not check out one of my no-obligation, online, On-Demand, virtual Real Estate Seminars?