A Micro Look At A Macro Market
Today there is only one home for sale in Rockpointe. Typically there would be between 4 to 8 units offered for sale this time of year. What we are experiencing in Rockpointe is what most of Southern California is experiencing. And that is a definitive lack of inventory. On the plus side this is certain to continue to drive prices upwards. But the caveat for this is that there are a couple of wildcards that could set our price point on a path of reduction. The first is that to day we have interest rates somewhere in the neighborhood of 4.5% for a 30 year fixed mortgage. Historically that number is about 8.5%. And for every point that that interest rates rise (and they certainly will) our potential buyers lose about $40K of buying power. This coupled with our relatively high HOA cost could make these homes unaffordable to our first time buyers, investors, and our move down buyers which are a major part of our primary target market. The other wildcard that could impact us is inventory. Ri