Some real estate agents and other real estate professionals are a bit concerned about why so few people are willing to sell their South bay luxury properties right now. There are so many buyers, but not enough homes to accommodate them all. Home price appreciation has slowed down to a comfortable, uphill crawl, so why aren’t homeowners taking advantage of the seller’s market, higher home values, and eager buyers? The answer is that they have really great mortgages they don’t want to give up. The real estate data company Corelogic believes that as many as 3.6 million people have discovered that their interest rates are great right now and don’t want to sell for fear that rates may rise soon. Since 2013, rates have been getting higher, but very slowly and they are still incredibly, historically low. Some property owners right now have rates at low as 3.3%. Almost one in three property owners has a rate below 4%, according to a company called HousingWire.
This week, rates are in the low 4% ballpark. Low, but still slightly higher than last year. The good news is many people have great mortgage rates right now, and continue to. The bad news is it means you’ll see less property for sale in the South Bay as no one wants to risk getting a higher interest rate in a few month on a new property that they move into. Low inventory means home values will go up – which is also good for property owners.
If you’re a buyer looking for a South Bay mortgage, now is the time to get one while rates are still low. If you’re a homeowner holding onto an old property because you don’t want to risk a higher interest rate on a new one, let me help you find the best rate in the South Bay.