Since our emergence from the 2008 recession, the story of the Bay Area real estate market has been one of steep competition, low inventory and unprecedented price growth. Now, with interest rates on the rise and the stock market sputtering, a rare window of opportunity has opened for buyers determined to make their move despite the recent headwinds. Prices in San Mateo County have come down more than 13% from their record-breaking spring highs, and homes are currently selling just under their original list price. Average days on market are up and so is inventory. In terms of balance of power between buyers and sellers, this is the furthest the pendulum has swung in favor of Bay Area home buyers in the past 10 years. So if you are a hopeful home buyer being kept at bay by interest rates or other concerns, now is the time to dig deeper for creative home buying solutions that work for you.
Options for buying a home are rarely as limited as people think they are. Affordability has always been a major hurdle to clear in this market, but the path to homeownership doesn’t have to be as black and white as saving 20% down on a home for which you alone have to shoulder the monthly payments. You can form partnerships with friends or family in exchange for pieces of ownership. You can look for a duplex or home with an ADU that can be rented out to offset your monthly payments. You can use extra savings to buy down your interest rate to a more manageable level. You can talk to a loan agent about special programs available to first time buyers and/or households under a certain income threshold. Once you start digging, you’ll find that the options available to determined home buyers extend much further than you think.
Owning real estate is the absolute best tool the general public has at their disposal to increase their net worth and build generational wealth. Taking advantage of opportunity when it presents itself could change the trajectory of you and your family’s lives forever. Whether you are a first-time buyer, current homeowner looking to move-up, or an investor looking to add to their portfolio, don’t let interest rates hold you back from exploring your options. Contact an experienced real estate team like RealSmart to find out what tools might be available to help you accomplish your goals.
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