[quote=bearishgurl]
At present, a good portion of buyers are making all-cash or mostly-cash offers.
It is the heavily-leveraged buyer who will find themselves shopping in successively lower tiers of homes as interest rates rise.
In coastal CA counties, the best areas to live in are the ones which are the least interest-rate sensitive. This is why highly-leveraged buyers’ choices will lessen even more in the wake of higher MIRs.[/quote]
Do you know this or are you just guessing?
It seems unlikely to me that a good portion of buyers are coming in with all cash or anything close to it in the higher priced neighborhoods, unless you’re talking about La Jolla or RSF. In the 10 years I lived in Carmel Valley, I never knew a single person whose house was paid off. Most had big mortgages.
