Housing watch: Local builder says demand for homes is still high
Home sales may have slowed for a short time but buyers clearly haven't given up on their search for a new home.
MADERA, Calif. (KFSN) -- The Federal Reserve has steadily raised interest rates in an effort to curb inflation.
The move had local homebuilders extremely concerned, though one company believes the market seems to have steadied itself.
De Young Properties is one of three builders developing the sprawling Tesoro Viejo development in Madera County.
As mortgage rates started to jump, buyers paused just a little bit.
"It was definitely something, all of us were wondering where it was going to go but thankfully, we've been picking up and have that interest still," says Ashley De Young-Seibert of De Young Properties.
Seibert says the company's Verano models are almost sold out.
Higher interest rates make homes less affordable.
We began the year with 30-year average mortgage rates at 3.2%.
Now that number is up to 5.6%
"It's come back down a little bit and it's always going to fluctuate a little bit. So it's all about finding the right home first and then deciding what is that monthly payment that you're trying to hope to get to," says Seibert.
Home sales may have slowed for a short time but buyers clearly haven't given up on their search for a new home.
"Recently we just closed eight homes in 10 days so that was a really exciting week for us," says Seibert.
Seibert believes interest remains high here not just because of the location but the neighborhood coffee shop and amenities.
The master planned development at Tesoro Viejo includes a swimming pool, a kids splash area and a large clubhouse.
Those particular homes start at $477,000.
