[quote=sdrealtor]rnen
You are looking in my backyard. The challenge is there is lots of demand around here but very little coming on the market. The homeowners around here are a pretty stable lot. If you are looking high end there could be some relief as there has been quite a bit of overbuilding in the way of 4,000 sq ft McMansions. If you are looking for something modest I just have a hard time seeing things get markedly better. I know tons of buyers out there looking for entry level homes. An REO recently came on the market around $500K in Rancho Ponderosa and it was bombarded with buyers/interest. The house was a pit and needed major remodelling. There is a huge demand for homes like this piling up but very little coming on the market. I wish it was otherwise but I dont see that coming. While I think we will see more inventory hit the market, the competition for anything decent and well priced will be substantial.

Even if rates jumped 1% or more, I dont think that would make a difference in the market for homes under 700K.[/quote]

You are too right, we have been “looking” for almost 4 yrs and this is the worst we have seen in terms of the quality and number of homes in our range. We have not found anything recently that excites us but will keep trying.

We are not looking to make money but are looking for a home which is why the an increase of even 1% is worth considering. Over 20-25yrs of payments that could translate into significant money. As a transplanted Canadian I have no experience with being able to write off the mortgage interest, maybe a 1- 1.5 point increase is not such a concern.