We're underway in 2017, so today, I wanted to give you some expert predictions for the California market in 2017.
Today I wanted to take a moment to give you some expert predictions for the California market in 2017.
As you probably have heard, interest rates are starting to go up. Rates recently went up by about 0.25%, and the Fed plans on increasing interest rates three more times in the next year. That means that if you buy a house for the area average of $500,000, you'll actually pay more if you do so after rates go up again. The longer you wait this year, the more you'll have to pay for the same house.
"The longer you wait, the more you'll
have to pay for the same house. "
Based on what we're seeing, market values don't seem to be slowing down. Historically speaking, when rates go up, we see activity go up with people fearing that rates will keep going up. I don't think values will continue to go up, I think they will stay stagnant. This means pricing won't go down, based on what we're seeing right now. The amount you'll pay for a home over the life of a loan will go up, however, due to rising interest rates.
In the long run, rates rising by even just 1% can add up to quite a bit of money.
If you have any questions about our market or you're ready to take advantage by selling a house, give me a call or send me an email. I'd love to work with you!