Buying a home in Silicon Valley is no small feat; as one of the largest purchases (if not THE largest) that most people make, it’s no wonder that it can be the source of a tremendous amount of stress and anxiety. But we all know that the good stuff never does come easy, and this week we wanted to share some data on the top 5 factors that influence California homebuyers to make a home purchase.
As you will see per the graphic below from the California Association of Realtors®, the top 5 factors in deciding to purchase a home are: 1) Prices, 2) Personal Finances, 3) Availability Of A Home I Like, 4) Down Payment and 5) Interest Rates.
Wait. Did you see what we see?! Interest rates are at the bottom of the list. While rates may impact how much home you can buy, they don’t in this case appear to be the statistical deal breaker that stop borrowers from buying all-together.
On another noteworthy and not surprising reveal, prices are the #1 factor in the decision for a buyer to make a home purchase. While home prices are gaining at a slower pace than years past, CoreLogic predicts a small uptick in the rate of increase over the next 12 months. That means buyers who are putting off a home purchase until prices drop may be sorely disappointed, while buyers who make a move today could begin to earn a return on their investment by year-end.
One more important note about buyers this season: the average loan size for purchases has reached a record high, according to the Mortgage Bankers Association. This imparts that the greatest share of the spring market appears to be move-up and higher-end buyers. The modest increase in housing supply coupled with modest rate ‘limbo’ as we call it, has urged many buyers to make a move while they have options.
If you have questions about what this data means for you as a buyer or as a seller – please don’t hesitate to reach out!
Happy buying & selling,
Mark & Jason
Rsources Used:
CoreLogic Price Gains Moderating, But Expected to Increase This Year