Like a roller coaster, the housing market is constantly going up and down. But as of late, home prices in the Bay Area have been experiencing a dip, lowering the barrier to entry of purchasing a home, and for the first time in quite a while.
National mortgage rates are currently above 5% for a 30-year conventional loan, and the Federal Reserve has mentioned that additional increases are soon to come. But hope is not lost for the California housing market, as the rise in interest rates have forced home prices to drop by 4% statewide within just the last month.
So now is the time! Investors and potential homeowners can take advantage of these declining home prices and purchase a “fixer-upper” property for some of the lowest prices in the last decade. While these types of properties may typically require more than just a kitchen remodel, the value-add to the property could result in an exponential monetary return once home prices are back to normal.
According to data from the California Association of Realtors (C.A.R.), the San Francisco Bay Area saw a 7% decrease in home prices from May 2022 to June 2022. And while this trend of decreasing home prices continues on, nobody is expecting this to last forever.
“With inflation remaining high and interest rates expected to climb further in the coming months, the market will normalize further in the second half of the year with softer sales and more moderate price growth,” C.A.R. Vice President and Chief Economist Jordan Levine said in a published report that highlights current home prices and sales trends.
This is obviously good news for the people who have patiently waited for the market to normalize. But it is also no secret that now is the time to hop on the bandwagon. Home Builders in the Bay Area, like Wise Builders, have mentioned that they are seeing a rise in home remodeling inquiries and more specifically, complete home remodels. So clearly, these fixer-uppers are no secret.
The report also highlighted a 26.8% decrease in home sales compared to 2021, so this lack of people bidding for homes has truly opened the door for this golden opportunity. The summer will be over in September, and these lower home prices will likely end by then too.
Company Name: Wise Builders
Contact Person: Nathan Weizmann
Email: Send Email
Address:2355 Paragon Dr. Ste E.
City: San Jose
State: CA 95131
Country: United States