There aren't too many things that economists agree on, but one of them right now is that we are likely to see higher interest rates as we move on through 2014.
This slide from the California Association of REALTORS(CAR) dramatically illustrates the impact rising interest rates have on home buyers. There are a couple of different ways to interpret this. One way is that, since we all know there are more people who earn $75,000 per year than earn $103,000 per year, there will obviously be far more buyers for your home with rates at 3% than there will be with rates at 6.5%. The second way is a little more personal, if rates were to rise 3.5% on the next couple of years, what do you think the chances are that your income would rise more than 35% over the same period?
The message is clear. If you're a Seller you will find far more buyers for your home now than when interest rates rise. If you're a Buyer you will be able to afford more home now than you will when interest rates rise. Either way, now is a great time to sell or buy, call/text me today at (626) 354-8000 to discuss how to get started!