$30,000 in Purchasing Power
What does this translate into for home prices?
If you had a $3,000 monthly budget for a home, when rates were 7.15% at the beginning of July you would have been able to purchase a $437,250 home.*
Fast forward to this month with a mortgage rate at 6.35%, that same homebuyer trying to keep their budget at $3,000 per month would be able to afford a $466,000 home — this is the $30,000 jump in purchasing power.
You might be thinking - $400K can barely buy you a shoebox in Southern California - but there are still pockets of affordability in Los Angeles, San Bernardino, and Riverside county if you are looking to become a homeowner.
“For house hunters who have been waiting for rates to fall before they buy a home: Now is the time,” said Redfin Chief Economist Daryl Fairweather. “Mortgage rates may decline more as the year goes on, but that will invite competition and push home prices higher, likely canceling out the savings from a lower mortgage rate.”*
The industry is undergoing massive changes right now with the new REALTOR requirements of signing writing buyer representation agreements and changes to the way we REALTORs do our business. But one thing is certain: buying a home is important, yet comes with challenges, and you should have an expert professional guiding you through the process.
Positive news for home buyers this August: you just got an increase in purchasing power.
Positive news for home sellers: we continue to see sellers putting their home on the market as “As-Is, not willing to do repairs” and being able to sell! It is empowering to sell on the terms that you want.
If you are overwhelmed with social media posts and news articles on real estate and you aren’t sure where to turn, reach out to me and I can shed some light and clarity on your situation.
As always, happy to help!
