Home mortgage rates continue to drop as 2013 nears an end.
Home buyers were in a bit of a struggle over the summer. Not only did interest rates take a 1 percent jump, but available housing inventory for sale was still pretty scarce. Prices rose due to such a high velocity demand from not only buyers who wanted a residence to live and/or raise a family, but investors were still snatching up properties as well.
With the considerable rebound in housing prices, it’s no wonder that buyers are back in the game. Knowing that the investment they make will begin to grow equity almost immediately whetted the whistle of those looking for homes, and sellers took complete advantage. Many home sellers experienced multiple simultaneous offers, putting them completely in the driver’s seat as far as price, terms and conditions against the buyer whose offer was finally accepted.
A slight shift in the real estate market that turns into a win-win for both buyers and sellers.
As interest rates rose over the summer, housing sales began to level off slightly, bringing about a slow rise (VERY slow!) in available houses for sale. While inventory is still low in Santa Clarita, it has raised a few hundred units from around 300 at the end of summer, to around 500 in October. Now, this is typical as the year winds down and the holidays near. Many sellers consider holding off listing their home until after the new year, although there are many who are serious enough about selling that they will continue to offer their homes to buyers straight through.
Reasons why this time of year is great to buy.
As we mentioned above, mortgage interest rates are once again falling. Standard rates are down over half a point from August, hovering just over 4 percent. FHA loan rates have dropped to the high 3 percent range (3.8 percent as of October 31st). This alone can make a significant change in a buyer’s purchasing power.
Also, consider that this time of year there is less competition from other buyers out there. Home owners who are leaving their homes on the market through the holidays are the ones usually VERY serious about selling, and in some cases, are more willing to negotiate in order to get their home under contract and (hopefully) sold by year’s end.
Contact Team Avalos Real Estate with your buyer questions.
If you missed out on the historically low interest rates earlier this year, now is the time to reconsider your buying options and give us a call to see just how easy it is to purchase your next home.
Team Avalos Real Estate
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355
Office: (661) 290-3743
Carlos direct: (818) 399-4093
Rose direct: (818) 590-2077