Interest rates for 30 year fixed mortgages fell to their lowest rates ever—wow. (CNN Money) While prices have not fallen in our local Mid-Peninsula neighborhoods, the cost of home ownership has fallen considerably. Historic low interest rates haven’t been helping the real estate market across the country the way regulators and politicians have hoped for, but here in Palo Alto, Menlo Park and surrounding areas it is certainly another driving force that is keeping our demand high.
If you are thinking of buying a home, my advice is to find a good house and make an offer so you can lock in a low rate now. Prices in this area are not going down, so don’t wait for the “bottom of the market.” At least that’s my opinion. The deals I see being made now are going to pay off long term for those who step up. While prices may not see any solid appreciation for another year, the reward of a relatively low tax base and historically low interest rate on a trade-up property will pay off both sooner and later, making the joys of Mid-Peninsula home ownership all the greater. Expect new listings coming on the market in the coming weeks to be realistically priced, but be prepared to compete with multiple offers.