Waiting for the Perfect Real Estate Market? You May Be Waiting a Long Time.

If you had asked me a month ago what I thought about the real estate market, I would have said it was challenging, but I was still hopeful we would see mortgage rates come down.

Lately, though, I’m hearing something different from buyers:

“Maybe I should buy now before rates go higher.”

Interesting how quickly the conversation can change. 😊

For the last few years, so many buyers have been waiting for two things to happen at the same time: home prices to come down AND mortgage rates to come down.

Could that still happen? Sure.

But what if it doesn’t?

What if rates stay somewhere around where they are for another year or two? What if 6%–7% mortgages are simply part of our new normal for a while?

At some point, we have to stop trying to predict the perfect market and figure out whether we can make today’s market work.

A Little Perspective on Mortgage Rates

I’ve been in real estate for over 30 years, so I have worked through a LOT of different markets.

People sometimes forget that 3% mortgage rates were not normal. They were extraordinary.

Look at the average 30-year mortgage rates over the years:

1971–1975: 8.28%
1976–1980: 10.45%
1981–1985: 14.45%
1986–1990: 10.24%
1991–1995: 8.25%
1996–2000: 7.57%
2001–2005: 6.21%
2006–2010: 5.70%
2011–2015: 4.02%
2016–2020: 3.84%
2021–2025: 5.69%

Those years of 2%, 3% and 4% mortgages changed everyone's expectations. But historically, they were the exception — not the rule.

Now I know what some of you are thinking:

“Yes, Mariness, but houses cost a lot more today!”

Absolutely they do.

Home prices are higher. Insurance is higher. Groceries are higher. Gas is higher. Almost everything costs more.

That is exactly why I don't believe in telling someone, “Just buy now because rates might go up.”

That is NOT how I work.

The better question is:

What is actually stopping you from buying or selling?

Is it the monthly payment?

The down payment?

Your current debt?

Are you worried about selling your home and giving up your low mortgage rate?

Do you need to sell before you can buy?

Are you afraid you're going to buy at the wrong time?

Or are you simply looking at a home price that doesn't comfortably fit your budget?

Those are problems we can actually work on.

Maybe we negotiate a seller credit.

Maybe that credit is better used for a permanent interest-rate buydown instead of a temporary 2-1 buydown.

Maybe we change the financing.

Maybe you put more money down.

Maybe we pay off another debt first and improve your monthly cash flow.

Maybe you need a bridge loan.

Maybe we adjust the price range or look in a neighboring area where your money buys more.

And sometimes, after looking at everything, my advice may actually be:

Wait.

Buying a house just because you're afraid rates could go higher is not a good reason to buy a house.

But waiting indefinitely because you're convinced 3% rates are coming back isn't much of a strategy either.

And Sellers — This Applies to You Too

I talk to homeowners who want to move but feel trapped by their low mortgage rate.

I understand it.

Giving up a 3% mortgage for a 6%+ mortgage doesn't sound very exciting. 😂

But your mortgage rate isn't the only thing that should determine where you live.

Maybe the house is too big now.

Maybe it's too small.

Maybe you want a single-story.

Maybe you want to be closer to your children or grandchildren.

Maybe you're relocating.

Maybe you have a lot of equity sitting in the house that could completely change the numbers on your next purchase.

Before deciding that you can't afford to move, let's actually run the numbers.

Rates Are What They Are. The Market Is What It Is.

None of us can control mortgage rates, the Federal Reserve, home prices or what happens six months from now.

What we can control is how we respond to the market we're in.

If rates drop substantially after you buy, wonderful — you may have an opportunity to refinance.

If rates stay where they are, you bought when the numbers worked for you instead of putting your life on hold.

And if rates go higher, you may be very happy you didn't wait.

After more than 30 years in real estate, one thing I know for sure is that there has never been a perfect market.

There are simply different markets — and different opportunities in each one.

So if you're sitting on the fence, I'm not going to tell you, “You need to buy now!” or “You need to sell now!”

I would rather sit down with you, look at your situation, your equity, your payment, your financing options and your goals, and answer a much more important question:

Can we make today's market work for YOU?

And if the answer is no, I'll tell you that too.

People First, Money After.

Mariness Chata
RE/MAX of Santa Clarita
RealtorMariness@gmail.com
661-317-3332