I. This is something I thought I’d never see in this rate environment!
Our extremely well-qualified buyers are repeatedly getting outbid in multiple-offer situations in the SF Bay Area – with as many as 20 offers in some cases.
This Is Why We Are Touting Our 10 to 14 Day Closings Again!
This is “calendar days” too; NOT “business days.” If you need to make your offer more competitive, call us to see how fast we can close.
II. How to Instantly Solve the Affordability Crisis
I shamelessly stole the table below from the National Real Estate Post.
It beautifully illuminates the severity of the affordability crisis!
The median home price was only 3.1x the median household income in 1990, but it is almost 5x the median income today.
Pretty scary, huh?
Welp, the table is missing something… It’s huge, and I explain what it is below.
The Table Is Missing the Average Mortgage Rate!
The internet says the average mortgage rate was a whopping 10.13% in 1990!
The average mortgage rate today is about 6.5%. And – I still expect rates to fall to 5.5% by year’s end.
I am assuming 20% down for comparison’s sake.
Problem solved. Lower rates solve everything…
And yes, I know there are some flaws in my analysis – but it illustrates the impact of lower rates.
And yes, I do think rates will fall to 5.5%, despite inflation, despite the war, and despite predictions of a Fed rate hike.
I will explain why in another blog.
And lastly, if rates fall to 5.5%, more “locked down” sellers will be willing to sell – increasing inventory and further helping the affordability crisis.
