By Todd Shea
2023 President
Santa Barbara Association of Realtors
I heard some discussion this week from an agent on our team working with a buyer. I wanted to pass this along as I thought it was a great case of where we are now. He mentioned that the parents of the buyers were saying to wait to buy. Which as a parent or family member, being protective of their kids or extended family from an outsider could make sense. But let's dive deeper into this advice.
One focus of this advice was that rates were high. Considering that when they purchased, the rates were double digits is an interesting perspective in which they responded, "But the prices for homes were so much lower than." Ok, yes, but let's think about this. At that time, how much lower, 8-10-12x lower? If they had not purchased during that time with double-digit interest rates, would they not have gained 8-10-12x equity in their home? This, in turn creating generational wealth that they are now using to help their kids purchase today and the rate they have refinanced over time.