Yes, Spring is still in the air, but timing is everything when it comes to buyers and sellers realizing their real estate goals.
There’s been a lot of good news in the Santa Clarita real estate market lately. Not only have single family homes topped the $500,000 mark for the first time in 8 years, but interest rates are still holding below 4 percent…establishing what we might call a “win-win” scenario for both buyers and sellers.
While we’re still smack dab in the middle of Spring, many buyers and sellers “on the fence” should take this time to consider the fact that Summer is one of the best times to buy or sell. Why?
First of all, for the most part, kids are out of school. Parents find it much easier to move in between school sessions. Also, it is the time right after tax season that many renters are reminded of the potential tax savings as homeowners. Conversely, those who have received tax refunds have cause to think about investing it in something that will give them a long term return.
Are mortgage interest rates going to rise?
Good question. Earlier this year, newly appointed Federal Reserve Chair Janet Yellen hinted that they may consider raising rates slightly to combat possible inflation as a result of improved economic conditions. If that’s the case, then perhaps we’ll see a bump. But remember, the historic average (going back to the early 70’s) for interest rates is nearly 8 percent. If rates do go back over the 4 percent mark, you’re still doing much better than the average!
However, one way to beat the “Will rates rise?” woes is to lock in your home mortgage rate now while they are still low.
Are home prices going to continue to rise?
While we don’t have a crystal ball, we can gauge trends over the past few years that show our continuing real estate rebound. 2013 and 2014 saw home price increases in the double digits (Averaging just over 12 percent both years). We saw a 6 percent increase in home values between February and March of this year. While the economy has grown slightly slower than expected in the first quarter of this year, we’re still seeing a lot of action on the home buying and selling front here in the Santa Clarita Valley, with no signs of letting up in the near future.
Want more information about the Santa Clarita real estate market?
Montemayor & Associates are a team of highly trained, experienced, full-service real estate professionals dedicated to guiding you to all of your real estate goals. Contact us today for a no obligation consultation.Email Contact Form