The Bay Area market is seen to go up last year, as fast paced until June. The Markets took a breather in July-September time frame, however, an increased bidding activity was seen in the market. We had some low down payment buyers take advantage of the slow markets and now again the competition is heating up, thanks to the low interest rates and the fear of the rising interest rates.
However with over 70% chance as per the experts on the rate hike, the mortgage rates have started climbing in anticipation. This means two things for most home buyers and sellers alike: Buyers should buy now, before the rate hike and higher rates set in. Seller’s should sell now to take advantage of the buyer demand due to lower interest rates. When the rates go higher, the buyer qualification is going to DROP and Seller’s will have less offers and may not be as high as expected.
What makes the home market affordable, is the combination of home prices and the interest rates. As long as you can afford, its always a good time to buy.