Low Interest Rates Affecting Home Price

Home prices are on the rise as low interest rates cause competition, which may result in a bidding war for your dream home.

Gabriela Murillo is searching for a new home in the city of Bakersfield, but it is not going well.

“Prices are really high right now, there is low inventory, and a lot of people are looking to buy so it makes it a very competitive market,” Murillo said.

So why are prices reaching these levels? Fabian Torres is a realtor in the Central Valley who has seven years of experience working in the field and says low interest rates might be the cause.

“I mean with the whole COVID thing, you see a lot of activity, I think it has to do with the interest rates dropping man,” Torres said.

Josue Fernandez is also looking to become a homeowner, but like Murillo, he is also struggling.

“Prices are really high right now,” Fernandez said. “There is low inventory, and a lot of people are looking to buy so it makes it a very competitive market.”

Torres backs up these claims.

“We didn’t expect to drop that much. I think they dropped about maybe like two points and that brought a whole lot of people who couldn’t buy before, to be able to come into the market,” Torres said.

With competition being at an all-time high, the search for a new home might not be so easy.