As we formulate our thoughts on the current buyers in the Lamorinda marketplace, it is clear there is a hole! 

• We have buyers coming from Oakland, given the high crime levels.
• We have buyers coming from San Francisco in search of great schools and a different lifestyle.
• We have buyers from all over coming to be closer to their grown children and grandchildren.
• We have local buyers downsizing (selling their current homes and buying with cash). 

We do not have local buyers moving to larger homes within our community. Currently, most Lamorinda sellers are rate locked unless they can buy with cash. 

What is a rate-locked homeowner? It is someone with a low-interest rate who does not want to trade their current interest rate for today’s higher rates which equate to much higher borrowing costs. In fact, according to the Federal Housing Finance Agency, the average interest rate for current homeowners with mortgages is 3.8%. Historically, the delta between current mortgages and today’s mortgage rates needs to be less than 2% for sellers to feel comfortable selling. This means we are more than 1% over this threshold. 

Here’s what this means for you… 

When so many homeowners are rate-locked, they are reluctant to sell, causing inventory challenges. We need ready, willing, and able sellers and buyers to have a productive and balanced environment. 

Lean on us to share our advice and market knowledge for your unique needs and goals.

Dana & Team