Local Market Review and Forecast
Real estate continued boldly through the second half of 2020. Despite a pandemic and huge changes in how business is conducted, sold home prices are up 13.4% in Marin County and 13% in Sonoma.
How did that happen?
Two words: Interest rates.
What you will be reading about soon:
- We may have seen the end of sub-3% mortgages, and possibly 3% mortgages.
- The capital markets – the ultimate influence on rates – have climbed since the completion of the Georgia senate runoff, which gave the Democrats a majority in both houses of congress. The expectation is for more spending (hard to see a way around it), and that translates to higher interest rates.
- The benchmark index for home mortgages began moving up significantly the day after the election.
What does this mean for buyers?
Act now. Higher interest rates decrease purchasing power, which will not be offset by any movement in real estate prices, even if prices soften. And two years from now you will be so happy with your 3.25% mortgage!
Considering a sale? Contact me today to discuss your options and best timing.