A double shot of good news for those hoping to buy a home here in the Bay Area. Mortgage rates and housing prices are both falling. Scott Budman reports.
A double shot of good news for those hoping to buy a home here in the Bay Area. Mortgage rates and housing prices are both falling.
Silicon Valley real estate agents like Lynsie Gridley are watching Bay Area housing prices dip for the first time in 13 months. While it's good news, they also admit It's not a buyer's market yet.
"It would take a lot more homes to reach that level," she said.
One San Jose home had 60 open house visitors last weekend, proving demand is still well ahead of supply. But prices in the area are down about 2% since last year and inventory is climbing slowly.
"We have more homes on the market, more choices available to the buyers. So maybe a little less of the crazy multiple offers," Gridley said.
Falling mortgage rates are also having an effect from last year's high sevens to today's low sixes. Lower rates are bringing a few more people out to look. but not everyone.
"I don't think I'd ever get back in the market, not in this area, it's too high," said San Jose residents Roberta Brown.
Some potential buyers said while the low rates are nice but more options are necessary.
Another benefit of falling mortgage rates is increased buying power because the monthly payments will be lower, the average buyer here in the bay area now has about $200,000 more buying power as they shop
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