PACIFICA, CA REAL ESTATE | THE FINAL QUARTER OF 2023...
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SO. MANY. OPTIONS.
We're now well past our anemic summer inventory and just catapulted into a 🍁 Fall season with so many options on the market! Turn-key, fixers, investment opps, and everything in between. What a difference a month makes...
This is the final push of the year where we'll start seeing buyers and sellers go hard until Thanksgiving. 🦃 Everyone likes to be settled by the holidays.
HIGH INVENTORY + HIGH RATES = SUPPRESSED PRICING 💸
The interesting dynamic going on this Q4 is our unusually high inventory + high rates. These two factors are contributing to a beneficial buying market by:
Diluting competition* through increased supply and
Suppressing prices* through higher rates (although prices are up - they're suppressed...)
*good for buyers!
THE ELEPHANT IN THE ROOM 🐘
The limiting factor, of course, is affordability (i.e., PITI - principle, interest, taxes, insurance).
No doubt, current rates can be a bummer! But, if you re-frame it and see the advantages higher rates have on housing prices, it's easier to palate. Higher rates with high supply suppress home prices. Period.
Successful buyers are treating their high-rate loans as temporaries until they refinance when rates fluctuate back down.
LOAN HACKING/CREATIVE FINANCING TO USE NOW 🤑
I've asked my guys over at PNC Bank to put a sample payment spread together to show how they're using creative financing to reserve cash or minimize the monthly payment. Some options they're using are:
15% down (vs. 20%+)
ARMs vs 30-years (since re-financing in the next few years is incredibly likely)
Interest Only Options
Here's an example of a PITI spread with a $1.2mm purchase price - 15% down option...
MORTGAGE INFO: LOCAL EXPERIENCE MATTERS
I will time and time again recommend trusting an experienced and local mortgage loan officer. My guys over at PNC are my personal favs! I've used them many times for my personal home loans/refi's so I know their process is legit and comprehensive. Plus, they're super cool to work with. If you'd like me to make an intro, let me know and I'd be happy to!
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👉 For a deeper dive into the market or PITI info, or if you have any other specific real estate related questions call me or text me anytime.
CONTACT ME
(650) 898-8869 | call or text
michael@pacificarealtor.com
Disclaimer
Michael Jimenez, Pacifica Realtor, DRE #01961866 provides access to information on this blog/website page as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all information made available is current, complete and accurate, Michael Jimenez does not warrant or represent that this information is current, complete and accurate. All information is subject to change on a regular basis, without notice. Michael Jimenez assumes no responsibility for any errors in the information provided, nor assumes any liability for any damages incurred as a consequence, directly or indirectly, of the use and application of any of the contents of the blog/website page. The inclusion of, or linking to, other website URLs does not imply our endorsement of, nor responsibility for, those web sites, but has been done as a convenience to our blog/website visitors. By using this site you understand that there is no attorney-client relationship between you and the site publisher.