Fannie Mae recently released their monthly housing survey, and consumer confidence declined for a seventh straight month. Only 19% of consumers think now is a good time to buy a home. 75% of consumers think now is a terrible time to buy. The number one reason they cite is affordability–rising interest rates combined with high prices.

We see this reflected in the East Bay quarterly real estate statistics. The median sale price is down only 1% over last year and interest rates have risen over 100%, more than doubling year over year!

Moreover, the number of homes sold declined 27%. Sellers who are locked in with historically low interest rates are hesitant to let them go by selling. And many are still looking at what their neighbor’s house sold for in the spring and want that price too. The reality of the market shift has not set in for many.

This has led many buyers to take a break from the real estate market. But those who stay in have a few options to meet seller’s expectations and get into contract on a home.

If you find a home you love but the seller isn’t willing to lower their price, you can get creative with your mortgage options. Many banks still offer low interest rates, some even below 4%. Those willing to race against the clock can pay to lock in a lower interest rate and then look for a house. Others can ask the seller to buy down their rate by paying points. Down payment assistance programs are even an option for the first time in years.

If you are a buyer who doesn’t want to wait for interest rates to come back down to buy a home in the East Bay, it is important to find an agent that understands all your options and is willing to help you find the best interest rate you can so you can meet seller’s expectations without breaking the bank.