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Market in September 2023: Why It’s Still a Prime Time to Buy a Home Despite Rising Interest Rates

As August unfolds, the California housing market is bustling with activity, and potential homebuyers might be grappling with a seemingly daunting challenge: interest rates inching towards 8%. However, savvy investors and home seekers understand that there’s more to the story than just rising rates. In this article, we delve into the factors that make September 2023 an opportune time to buy a home in California, even with interest rates on the rise.

1. Strong Economic Fundamentals

Despite the rising interest rates, California’s economy remains robust. A mix of diverse industries including technology, entertainment, and agriculture continues to drive employment and income growth. This economic stability contributes to a higher level of consumer confidence, making it a suitable environment for long-term investments like real estate.

2. Limited Housing Supply

The perennial issue of housing supply shortage persists in California. The demand for homes far outpaces the available inventory, which maintains upward pressure on home prices. For buyers, this might indicate the potential for appreciating property values, turning the purchase into an investment that could yield substantial returns in the future.

3. Favorable Demographics

California attracts a steady influx of individuals and families due to its job opportunities, lifestyle, and climate. This demographic trend ensures a consistent demand for housing. In the long run, the steady flow of people moving to California can help sustain property values and potentially lead to profitable resale opportunities.

4. Tax Benefits and Incentives

California offers various tax incentives for homeowners, such as the ability to deduct property taxes and mortgage interest from federal and state income taxes. These tax benefits can mitigate the impact of higher interest rates, making homeownership more financially viable in the face of rising costs.

5. Equity Building Opportunity

Real estate is a tangible asset that allows homeowners to build equity over time. Even with higher interest rates, each mortgage payment contributes to ownership and wealth accumulation. This equity can serve as a safety net during economic uncertainties and may provide the means for future financial endeavors.

6. Locking in Today’s Rates

While interest rates are on the rise, they are still historically low compared to previous decades. Buyers who enter the market now can lock in comparatively favorable rates, providing a level of financial security for the duration of their mortgage.

7. Long-Term Affordability

Real estate is a long-term investment. While higher interest rates might lead to slightly higher monthly payments, the overall affordability of a home is determined by a combination of factors including property appreciation, income growth, and inflation. The potential for future income increases can offset the impact of rising rates over time.


In September 2023, the California housing market remains a promising landscape for potential homebuyers, even in the face of rising interest rates. With a strong economy, limited housing supply, favorable demographics, tax benefits, and the opportunity to build equity, the current market offers numerous incentives to those looking to invest in real estate. By acting now and taking advantage of historically low rates, buyers can position themselves for long-term financial stability and growth. As you embark on your homebuying journey, remember that in real estate, strategic timing and a long-term perspective often yield the most rewarding results.

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“Creating Lifelong Memories & Friends, One Home at a time!” | 👨🏼‍💼 Jonathan VanLoo | 👼🏼 Father of a Daughter | 🇺🇲 US Army Veteran | 🏠 REALTOR® | 📲 707.365.5290 | 🪪 DRE#02214790 | 🍇 Brokered by: Country Estates, Inc

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