The national
average for a 30-year fixed rate mortgage crept up by 0.27% in the past month,
causing home buyers to worry that they may have “missed the boat” and their opportunity
to act on the market. Add to this the recent run up in home prices in some
areas due to investor activity and it’s easy to understand the anxiety.
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| The State of Real Estate: You haven't missed the boat! |
It’s true: investors have helped drive up the price of
real estate in many parts of the country where distressed homeowners were
forced into short sale or foreclosure situations. Bidding wars on bargain
properties helped push prices up and, when combined with a cash offer, out of the
reach of most lender-financed buyers.
Some
analysts believe the investment property buying spree is beginning to level
off, making it easier for traditional home buyers to compete for winning bids
on their property of choice.
Reuters’
Margaret Chadbourn writes that investors are pulling back from the housing
market as mortgage rates creep up in anticipation of the Federal Reserve
scaling back on stimulus funding that came in response to the economic crisis
that began in 2007.1
Prices
aside, it’s important to remember that even with the recent modest increases,
mortgage rates are still in historically low territory.
Reporting on
an investor conference in New York this week, Bloomberg’s Dakin Campbell shared
the assertion of Wells Fargo CFO, Tim Sloan:
“We don’t believe that the recent increases in mortgage rates
are going to in any way, shape or form snuff out the housing recovery. When you
look at any sort of statistics in the demographics in terms of household
creation as well as household affordability, they are still very attractive and
should drive a continued recovery in the housing business.”2
The news is
good for sellers. In Yorba Linda, for example, prices have climbed by double
digits in every home size category compared with the same period in 2012. Yet from a buyer’s standpoint, the average
price for a 3-bedroom home in Yorba Linda has only increased 1% over 2008
levels. Also good news! 3
This may be
one of those rare moments in real estate history where market conditions in
areas like Yorba Linda are great on both sides of the deal!
Are you
interested in moving to Yorba Linda and ready to look for a home in the area?
Or are you a property owner and feel that the time is right for you to sell?
Whatever your real estate goals, give me a call to schedule a free consultation
about your options in this dynamic market.
Nanette Shapiro
(714) 924-0781
nanette.shapiro4@gmail.com
