The Long Haul

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Like we said earlier, you have to think big when it comes to home investments, and this chart says it all. While median house prices in Santa Clara County may have dipped a bit in 2023, they’re still more than double the pre-Recession peak in 2007. Want to see a more detailed report for your neighborhood? Request one today, and we’ll deliver it to your home or email.

The Big Picture

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It’s always important to consider the “big picture” before making any financial decisions, and especially when it comes to real estate. This is particularly true in the Bay Area, where a home is not just a lifestyle choice but also a long-term investment. Here are some dos and don’ts for home buying in an uncertain market.

CHIC (Pearl)

I’ll take the Do’s. First thing’s first: Ignore the noise. Back-of-the-napkin analysis or one set of data should never dictate your next move. If you’ve made a financial plan, stick to it. Wait for the right moment, and make your best offer. And it never hurts to rebalance your investment portfolio to insulate yourself from market fluctuations. Like the meme says: Keep calm, and carry on.

GEEK (Kevin)

Looks like I get the Don’ts, which is only one letter away from donuts, so now I’m hungry. But seriously: You can’t time the market, so don’t even try. Don’t panic because of something you read online (even our emails). As the market continues to recover, you can make significant gains simply by holding steady. Hang on to your investments for the long haul, and your patience will pay off.

Mortgage rates on the decline.

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According to the folks at Freddie Mac, average interest rates on a 30-year fixed-rate mortgage fell to 6.61% last week, the ninth consecutive week of decline, but still higher than one year ago (6.42%). Economic experts expect further declines heading into 2024, although the current dip has yet to spur an uptick in home sales due to a lack of inventory.

Here's a look at how key economic indicators fared in 2023: