Home prices are starting the year at an all-time high, kicking this season in gear for what’s sure to be a competitive ride. The median home sale price in California surged during the first week of January to an all-time high of $864,000. Prices keep climbing due to the supply drought and demand increases.
To top it off, the number of homes for sale fell to a new low as listings hit the market at a slower rate than they did the same time last year. Yet homebuyer activity is still increasing despite lack of supply and rising rates. Mortgage rates rose to 3.45% during the second week of January, making home buying more expensive as overall inflation hit a 40-year high.
Buyers are pouring into the market to score a home before rates further increase, and being met with lots of competition. They are viewing every house on the market, offering well over the asking price, waiving contingencies, and still losing to other buyers in bidding wars. Between the rising costs of inflation mixed with climbing rates and supply chain shortages, January has already set the stage for purchasing turbulence.
The refinance market, however, is prospering as homeowners look to take advantage of the low rates while they last. Interest rates are set to spike a few times in the year ahead, so now is the perfect time to lock in a lower rate and save money monthly on your mortgage payment, cash in on your equity, or pay off your mortgage earlier by refinancing to a lower rate and making higher payments.
If you have any questions about the current housing market, or what your refinance options are, please reach out to us at (760) 930-0569 and one of our loan officers will assist you.