If you’re thinking of buying Silicon Valley real estate this year, the expert advice is to do it sooner rather than later. There are a couple of reasons for this. For one thing, the Silicon Valley home market suffers from low inventory. This is especially true for more modestly priced homes. While new development offsets that somewhat, the current rate is not enough to fulfill demand. The winter months are typically slow for real estate. This means that if you can get into the market now, you will have a better chance of getting the house you want without the stress of bidding wars or having multiple rejected offers.
Interest Rates Projected to Go up, Affecting Silicon Valley Home Loans
The second factor that points toward buying sooner rather than later is interest rates. In comparison to last year, rates are up about a quarter of a point. This means that payments are about 3% higher than they were last year. That isn’t enough to break the budget for most people. However, rates are projected to go up by as much as three quarter of a point. This puts payments at 9% higher than they currently are, which is a sizeable increase.
Please call our office if you would like to discuss your Silicon Valley real estate plans. We are very experienced in this market and would be happy to help you find your next home.