Is Now a Good Time to Buy a Home in Southern California?
By Benny Almazan | Broker Associate, HomeBase Realty, Inc.
Should you buy a home now or wait for mortgage rates to drop? It's a question I hear often from buyers in Lakewood, Long Beach, Bellflower, Cerritos, and surrounding communities.
After more than 30 years in real estate, I've learned that the lowest interest rate doesn't always mean the best deal. The price you negotiate, the competition you face, and your monthly budget all matter.
What Happens When Rates Drop?
Lower mortgage rates can bring more buyers into the market. If the number of homes for sale doesn't keep up, competition can increase. That may mean multiple offers, fewer seller concessions, and higher home prices.
Prices don't always rise when rates fall, but it's important to consider the possibility.
Why Buy in Today's Market?
When some buyers wait on the sidelines, qualified buyers may find advantages:
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Less competition for certain homes.
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More room to negotiate price, repairs, or closing-cost credits.
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More time to compare properties and make informed decisions.
These opportunities depend on the neighborhood and the property. A desirable, well-priced home can still attract multiple offers.
Let's Compare Two Scenarios
Imagine two purchases with 20% down and a 30-year fixed mortgage:
Buy Now:
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Home price: $800,000
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Down payment: $160,000
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Interest rate: 7.38%
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Monthly principal and interest: Approximately $4,425
Buy Later:
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Home price: $850,000
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Down payment: $170,000
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Interest rate: 6.00%
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Monthly principal and interest: Approximately $4,077
In this hypothetical example, waiting brings a lower monthly payment, but also a $50,000 higher purchase price and an additional $10,000 down payment.
Neither option is automatically better. These payments exclude property taxes, insurance, HOA fees, and closing costs.
What About Refinancing?
If rates fall in the future, you may be able to refinance. But refinancing isn't guaranteed and can involve fees.
Never buy a home based on the assumption that you'll refinance later. Make sure the payment works for you today.
Local Knowledge Makes a Difference
The Lakewood housing market isn't identical to Long Beach, Bellflower, Cerritos, La Mirada, Buena Park, or Cypress.
Prices, inventory, and negotiating opportunities vary by neighborhood. Understanding local sales and current listings is more useful than relying on national headlines alone.
My Advice After 30+ Years
Don't wait for a perfect rate without looking at the full picture.
If you're financially ready, have a comfortable monthly budget, and find the right property at the right price, today's market may be worth exploring.
If the payment would strain your finances, waiting may be the better choice.
The right time to buy isn't necessarily when interest rates are at their lowest. It's when the home, the price, and the payment make sense for you.
Let's review your options together and see what makes sense for your goals.
Benny Almazan | Broker Associate
HomeBase Realty, Inc.
30+ Years of Real Estate Experience
Call or Text: (562) 480-1767
Website: bennyalmazanrealtor.com
CA DRE #01055293