With interest rates climbing skyward, some may think now is an excellent time to sell your Auburn home, unlike they have done over the last decade. With interest rates going up, the market may slow down, and inventory will return to the market, stifling feverish demand for homes.
When people sell homes, there’s usually a trigger causing it—a job change, downsizing, moving closer to family, or family changes. Selling for selling’s sake and cashing out is usually way down on the reasons to sell unless you’re an investor.
If you’ve had a change in your family or job situation, maybe it is a good time to sell. Here’s what’s going on in the Auburn market right now.
Although interest rates have climbed the last three months faster than in years, it has not stifled demand in the Auburn market. We haven’t noticed a slow down in demand on any level.
Part of the reason is that 1) 4% or even 6% isn’t a historically high mortgage interest rate, and 2) there are still 3/1 and 5/1 adjustable rate mortgages available well below 4% interest.
The demand is still in our market, and while that may change, there are more buyers than sellers.
Another reason for consistent demand for housing is that inventory of homes for sale is historically low. As of this writing, there are only 28 single-family homes for sale in Auburn which is lower than last year. While it is the beginning of the selling season, May, June, and July will increase but not more than demand.
If mortgage interest rates climb up over 5%, we may see that change, but as it is, I’d expect lower inventory levels for the rest of the year.
The pandemic put the kibosh on so many things. When the lockdowns occurred, production of just about everything slowed down to a virtual halt. The production of building materials slowed to a virtual standstill, and because of that, builders are paying more to build the same home than they did two years ago.
Production has largely returned to normal but the problem is they’re playing catch up. Demand is high, and builders can’t build homes fast enough to meet it, which puts pressure on existing homes, driving up home values.
The silver lining in all of this is that it’s a seller’s market. If you need to sell your Auburn home, it will be no problem getting that done for a price that will surprise you. The average homeowner in the US has somewhere around $185,000 in equity. If it’s that high in the US, you know that number is higher in California, especially in Auburn.
If you’re thinking about selling your home, talk to us at Gold Rush Group. We’ll take our time and give you an assessment of the market in your neighborhood and what you can expect from the sale of your home. Please click here for our contact page.
Thanks for visiting!