This year has marked a dramatic shift in real estate transaction volume compared to previous years. The primary reason is that the majority of homeowners currently have an interest rate on their mortgage of less than 6%. This is the main reason they are not looking to move into a new house anytime soon as the payments would be noticeably higher. Many of my clients are looking to just wait it out until rates drop or they have other motivations to move.
New data out this month also shows that there are a record number of Americans that own their home outright and have no mortgage payments at all. This is a significant trend I am tracking as many homeowners have not only paid off their mortgages, but now hold significant equity in their homes. For many of my clients we are looking to leverage that advantage to their benefit as they look to downsize or relocate. With a capital gains exemption on their potential sale combined with Prop 19 that allows them to take their property tax basis to their next home, this creates a perfect scenario for retirement and wealth building.
Keller Williams Realty Danville
CA DRE # 02108792