In a market where mortgage rates remain above 7%, many in Southern California are wondering how best to approach their home search. Higher Treasury yields have kept borrowing costs elevated, making affordability a central concern for those planning their next move. Recent studies recommend that buyers anticipate possible rate increases—a half-point within three months, three-quarters within six, and a full point over the next year—so building a rate cushion into your strategy is wise.
One noteworthy trend: buyers who wait until later in the year often gain valuable leverage. Historically, homes in early Q4 have sold for about 5% less than those in late Q2, with less competition and more room to negotiate. Last month’s inventory—about a five-month supply—also tipped the scale toward buyers, offering more bargaining power on price, closing costs, and even options like discount points or temporary rate buydowns.
As the market absorbs expectations of further Fed tightening, the long-term goal remains: taming inflation to eventually ease mortgage costs. My approach has always centered on helping clients understand these shifts and crafting a plan that puts them in the strongest position—whether buying, selling, or investing. If you’re considering your next step, let’s make sure your strategy is informed and your goals are clear.
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