July 2023 SF Bay Area Market Update

2023 has seen the lowest number of homes available for sale in the San Francisco Bay Area compared to the previous 6 years. While there are several factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock. As a recent survey from Realtor.com explains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down. With the recent economic data, Morningstar expects that mortgage rate will trend down in the second half of the year, and we’ll average 6.25% for 2023. Morningstar’s forecast model then expects mortgage rates will average 5.00% in 2024 followed by 4.00% in 2025. These indicate that we can see more buyers returning to the market and in the upcoming month and year. 

If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to make the change. The best time to sell your home is when others aren’t selling. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.

If you’ve been waiting on the sidelines to purchase a home, it might be time for you to start up your home search again. You know you’ve found the perfect home when a house checks off all the boxes of your list of must-haves plus more and it is a home you can afford to purchase. So it’s beneficial to start preparing for your home search ahead of time and create an effective search strategy. You can find better deals before the mortgage rates come down and before all the buyers return to the market. Remember you marry the home, but you can continue to date the mortgage rate after your home purchase. 

Can you think of anyone who may be thinking about buying or selling their home? I would really appreciate your referral!