According to Bankrate.com the average California Jumbo interest rate is below 6%!!! With everyone predicting 7% to 8% interest rates, and indeed it hit 7% earlier this year, the sentiment was that the market had to fall. But what now?
I've been saying for several months now that I thought San Francisco would get hot again by or during the Spring of 2007. With interest rates this low, that's making my prediction a stronger one.
I keep hearing reports of how tough it is in nearby markets - but near San Francisco is NOT San Francisco. Prices are UP this year compared to last year, and 2006 was "slow" in comparison to the last couple of years.
What will 2007 bring? Honestly it is anyone's guess. But there are plenty of Buyers around, still not that much for sale, and buying power is at it's highest since 2005. Buyers ought to be on the look out and ready to snap up anything they like before prices rise again, and Sellers should gear up for a Spring-time Listing.