Andrea Ballesteros January 26, 2024
Hey there, savvy homebuyers and real estate enthusiasts! If you're keeping a keen eye on the Southern California housing market like we are, you've probably noticed the recent dip in mortgage rates. And guess what? It's not just good news for your wallet; it might just be the nudge some homeowners needed to dust off those "For Sale" signs.
The Mortgage Rate Lock-In Effect
For the past year, house-hunting adventurers like yourself have faced a challenge: a shortage of available homes on the market. Blame it on the rate lock-in effect. When mortgage rates did the limbo and went up, many homeowners decided to keep their cozy nests instead of taking on a higher rate for a new abode. As Freddie Mac puts it, they were "rate locked."
Signs of Change on the Horizon
But hold your house-hunting horses! Early signs indicate that those once "rate-locked" homeowners are getting ready to shake things up. According to Realtor.com, there's been an uptick in new listings in December 2023 compared to the same time in 2022. And if you're wondering why that's a big deal, typically, the later months of the year are quieter in the housing market.
This surge in new listings is a ray of sunshine breaking through the clouds. It's the first time since 2020 that we've seen such activity during the holiday season. Could it be a response to those enticingly lower mortgage rates? We like to think so.
What's in It for You?
Now, before you start picturing an avalanche of "For Sale" signs, let's keep it real. While we're not predicting a sudden flood of options, more sellers testing the waters means more possibilities for you. According to the brainy folks at the Joint Center for Housing Studies (JCHS), falling interest rates could lift the lock-in effect, giving homeowners a newfound sense of urgency to sell.
So, what's the bottom line? As mortgage rates take a dip, more sellers might just dip their toes back into the market. This could be your golden ticket to finding that dream home. Connect with us, your local real estate aficionados, and let's make sure you're the first to know about the hottest listings in Southern California.
Happy house hunting, adventure seekers!
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We will work tirelessly to ensure you have the best experience whether you are selling your home, looking to purchase an investment property or searching for your forever house. We are here for you and don’t just walk away after closing. We pride ourselves on our long term relationships with our clients and will guide you through all the necessities you need before, during and after your selling or buying experience.