Recent headlines about stock market fluctuations are likely influencing your real estate decisions this spring. While the Dow Jones Industrial Average is down 5.9% in the last month and 4.84% in the last six months, it's important to maintain perspective on the longer horizon.
The five-year performance tells a completely different story - the Dow is up an impressive 68.56% since April 2020. Similarly, the S&P 500, despite recent dips, has delivered an extraordinary 92.69% return over the same five-year period.
This reinforces what we know about both stocks and real estate: "the longer you are holding ownership... the more likely you are going to look back and feel like a genius." You who maintain this perspective will make confident decisions that serve your long-term lifestyle needs.
Mortgage Rate Update
We're finishing the week with mortgage rates tracking slightly downward - a positive development for buyers. Conforming 30-year fixed rates are averaging 6.92%, with jumbos slightly higher at 7.08%. While we'd love to see rates drop into the mid-6% range, stability in the high-6% to low-7% range provides clarity for your planning.
Strategies for Spring Buyers
For those of you concerned about liquidating investments during this temporary market dip, I'd like to remind you that:
Lower down payment options of 10-15% can be excellent alternatives that allow you to retain your stock positions while still securing your dream home. You can always sell at more favorable times and pay down the loan to reach that 20% equity position later.
Looking Ahead
This spring represents an excellent opportunity for you in the Santa Barbara luxury market to make thoughtful moves. With a slight easing in mortgage rates, some seasonal inventory expansion, and the long-term perspective on both real estate and investment portfolios, the conditions are favorable for those ready to elevate their living experience.
Remember, my value as your luxury agent lies in helping you see beyond headlines to make decisions that enhance your lifestyle for years to come. You'll appreciate having this balanced outlook.
Credit to Jeff Boschler for market insights and analysis.
