Consider the interest rates when deciding to sell your California House.
Many people believe that the housing market is cooling in Southern California and they are asking themselves if they should sell my California house now. The housing market in Southern California is changing and you want to be ahead of the next potential downturn. Here are a few things to consider about interest rates when making your decision on selling your California real estate.
Rising Interest Rates
Interest rates are rising to combat inflation. The average interest rate for 2022 is 4.61 percent. See the chart below to see where interest rates have been headed for 2022.
So what does this mean for a homeowner, especially one who is thinking about selling? First of all, with rising interest rates the purchasing power of some buyers will be dramatically influenced. Most buyers who were stretching their budgets to find their dream home are now dramatically affected. These buyers can now afford less expensive homes and your buyers pool will be smaller that earlier in the year.
Now, this doesn’t mean your house won’t sell, it just means that as interest rates climb you will have to market your house better and be patient. When this happens houses do sit on the market for a little longer and buyers will be more thorough on their inspections and requests for repairs. On the flip side, if you are selling your home, your purchasing power also might be affected, depending on the current interest rates.
So what does this mean for someone who is thinking should I sell my California House Now? It means that interest rates will affect the speed and potentially the selling price of your home. As interest rates rise this will apply a downward pressure on overall housing prices. The reason for this is usually because the buyers pool is smaller and they have more options to buy because houses are sitting on the market for longer periods of time.
I truly hope this information helps you with your decision to sell your California home, Please feel free to reach out to us with any questions and for a hassle free, no-obligation cash offer on your home!