Interest rates are set to start trending upward as announced by the Fed. What does this mean for La Mesa home buyers and La Mesa home sellers?
Well... interest rates have been so low for so long, it has infused many La Mesa home buyers into the market. With that many buyers out there looking and little La Mesa home inventory, La Mesa property values have been steadily going up. When buyers see this interest rate hike, they PAUSE, and wait to see if they come back down. By the rule of simple supply and demand, more La Mesa properties will sit on the market.
When this happens the once strong upward trend of La Mesa home values will begin to flatten called an 'L curve'. This will hurt La Mesa home sellers since they are putting their homes on the market for the top of the home value spectrum. Sellers can no longer use multiple offers to play against each other to get the highest number possible.
For La Mesa home buyers, the same $450,000 home you wanted to buy in your favorite La Mesa neighborhood now costs you more per month. Most buyers don't realize that if interest rates go up even 1%, it can cost you hundreds in a monthly payment.
If you are considering buying or selling a La Mesa home, ACT NOW. Conditions NOW couldn't be better and change is on the way.
Chris Melingonis and Chris M Properties have helped so many of his La Mesa clients achieve their dream of home ownership. Please contact me with any La Mesa, Mount Helix or San DIego real estate market questions you may have.