Is real estate in the Inland Empire teetering on the brink of another bubble? From my recent experience in the last two weeks, you would think that Buyers have lost it. Now don’t get me wrong, I love being a Buyer’s agent, that is my expertise. But seeing a home on the market in Fontana for $325,000 receiving 25 offers and selling for $350,000, well that is something! Some buyers are removing the appraisal contingency to make this work. And this is just one example, it is happening in every neighborhood, in every price range.
Yes, interest rates are at an all-time historical low and rumors have it that they will go up next year after the election. Who knows? I heard Target sold out their inventory of crystal balls.
Ok, maybe it makes sense to overbid on a home that used to cost $450,000 a little over 5 years ago and can now be sold for $100,000 less. If you can get a 3.5% fixed rate interest loan for 30 years on that, then you are set!
Real estate is supply and demand. The other factor driving up home prices is the lack of available homes for sale. If you have 10 homes in the best school district for sale and you have 100+ buyers wanting to buy it, well need I say more?
If you are in the market this summer, I think my best advice is to not get discouraged and be prepared with your loan approval in hand.