"Palos Verdes Resident since 1947"

Is It A Good Time to Buy? A Good Time To Sell?

I get these questions all the time.  This is one of those times when I can honestly say that it’s a good time for either.  I know what you’re thinking, but hear me out:

If you’re buying: 

Interest rates have not been this low since the Earth cooled.  4%?  Are you kidding?  They’ve been low for a while now

Looking at houses the last time rates were this low

(tho not this low), and we’ve sort of gotten used to them.  When I got into this business in 1984 the best 30-year fixed rate loan was 15%, and hardly anyone thought we’d ever see single digit rates again.

If you’re waiting for rates to go lower, don’t.  The odds of them beginning to rise due to the National Debt are much greater than the odds that they will get any lower — heck, they’re practically paying you take the money!  If rates go up, yes there will likely be a reduction in house prices, but not enough to make up for the difference in monthly payment if they go to, say 8%, which is still a low rate by historic standards.  You could be sitting there with 4% for the next 30 years.

Oh, but isn’t it hard to get a loan?  Not if you know where to go.  I make it my business to know which lenders have the best rates for each type of buyer (big downpayment but marginal credit;  10% down but OK credit; etc).  If I’m your agent, you will not be floundering around with some mortgage broker who is more motivated by what the lenders will pay him than getting the best loan for you.  Agents don’t get paid for this stuff, so most don’t bother.  I do.

If you’re selling:

Can’t be good for both buyers and sellers, right?  Wrong.  If you’re selling, the low interest rates benefit you too, in that more buyers can qualify for your house and can qualify at a higher price.  Sure prices are down from the unrealistic, bloated prices of 2007 or so (driven skyward by shady shenanigans in the money markets, as we now know), but look where they are compared to just 15 years ago.  On the other hand, and just as with buying, if you wait thinking that prices will go up, you’re playing with fire because interest rates are the first thing scheduled to go up (see above), and when they do, down will go prices. 

I am always available at 310 613-1076 to discuss any of this, or email me at [email protected].

 

 

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