If you’ve been thinking about buying or selling a home lately, you’ve probably felt the tension: prices remain high, inventory is low, and things feel... stuck. You're not imagining it. The California housing market is in a bit of a freeze, and two major forces are behind it: high mortgage interest rates and Proposition 13.
Let me break down what’s happening—and how I can help you navigate it.
What’s Causing the Freeze?
1. High Interest Rates Are Locking People In
A few years ago, mortgage rates were historically low. Many homeowners locked in 30-year loans at 3% or less. Today? We’re hovering around 6.5%. That’s more than double—and for many, it makes moving simply not worth it.
Imagine this: you bought your home at a low rate, and your payment is manageable. But if you sell and buy something new at today’s rates, your payment could jump by a thousand dollars a month—for the same price home. For Californians, that jump can be even steeper.
This creates what's called the “lock-in effect”: people don’t want to give up their low-rate mortgages, so they’re staying put. Fewer people selling means fewer homes for buyers to choose from.
2. Prop 13 Adds Even More Reason to Stay
Proposition 13, a unique California law, caps your property tax increases and locks in a low tax base based on the price you paid for your home. If you’ve owned your house for a while, chances are you're paying significantly less in property taxes than you would if you bought a similar home today.
But here’s the catch: when you sell your home and buy a new one, your tax bill resets based on current market value. That could mean thousands more per year in taxes—on top of a higher mortgage rate. So again, why move?
So, What Happens Now?
With fewer people selling, inventory is tight. Fewer listings = fewer sales = higher competition. It’s frustrating for buyers, sellers, and renters. Renters feel squeezed because many people who’d normally buy are now staying in the rental market longer, increasing demand. First-time buyers are struggling to compete. And homeowners who want to move often can’t find a good alternative.
It feels like everyone’s in limbo.
How I Can Help You Navigate This Market
The good news? There’s always a way forward, and that’s where I come in. Here’s how I help my clients, even in a tough market:
Dual Expertise = One Streamlined Process
As both a Real Estate Broker and Loan Officer, I can help you buy and finance with fewer delays and clearer guidance. One point of contact means faster decisions and smoother communication.
Creative Financing Strategies
We can look into temporary rate buydowns to lower your monthly payment in the short term, or consider adjustable-rate mortgages if they align with your timeline. I’ll guide you through what’s smart and sustainable.
Exclusive Listings + Local Insight
Inventory may be low, but that doesn’t mean you’re out of options. I actively search for off-market opportunities, expired listings, and homes not yet advertised. You’d be surprised what a local network can uncover.
Real Talk + Strategic Advice
Whether you're buying your first home, relocating, or considering your next investment, I’ll give you honest, strategic advice—without the pressure.
Final Thoughts
This market isn’t easy—but it’s not impossible. With the right plan, the right people, and a little patience, you can still make great moves. Whether you’re ready now or just exploring your options, I’m here to help you understand the landscape and make smart decisions.
Let’s talk about your goals. No pressure. Just real conversations and practical guidance.
Brie Murillo
Founder, American Stages Realty & Property Management
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