Increasing Mortgage Rates Don’t Guarantee Declining Home Prices

Mortgage interest rates have already risen by over a quarter of a percentage point in 2018. Many are projecting that rates could increase to 5% by the end of the year.

What impact will rising rates have on house values?

Many quickly jump to the conclusion that an increase in mortgage rates will have a detrimental impact on real estate prices as fewer buyers will be able to qualify for a loan. This seems logical; if there is less demand for housing then prices will drop.

However, in a good economy, rising mortgage rates increase demand as many prospective purchasers immediately jump off the fence to guarantee they get the lower rate.

Let’s look at home prices the last four times mortgage rates increased dramatically.

Mortgage Rates on FIRE! Home Prices Up in Smoke? | Keeping Current Matters

In each case, home prices APPRECIATED and did not depreciate. No one is projecting as dramatic an increase in rates as the examples above. Most are projecting an increase of approximately 1% by the end of the year.

The last time mortgage rates increased by 1% over a twelve-month period was January 2013 (3.41%) to January 2014 (4.43%). What happened to house prices during that span? They appreciated by 9.8%.

Just two weeks ago, Rick Palacios Jr., Director of Research at John Burns Real Estate Consulting explained:

“Mortgage rates have risen 1% or more ten times in the last 43 years, with little impact on home sales and prices when the economy was also strong…Historically, rising confidence, solid job growth, and higher wages have more than offset reduced demand for housing resulting from higher mortgage rates.”

Bottom Line

When mortgage rates increase, history has shown that prices appreciate (and do not depreciate) during that same time span. Call The Ransom-McKenzie Team to talk about purchasing your perfect home.


Home Price Update: Where are Prices Going Nationwide?

CoreLogic released their most current Home Price Index last week. In the report, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month and projected over the next twelve months. Here are state maps for each category:

The Past – home appreciation over the last 12 months

The Past, Present & Future of Home Prices | Keeping Current Matters

The Present – home appreciation over the last month

The Past, Present & Future of Home Prices | Keeping Current Matters

The Future – home appreciation projected over the next 12 months

The Past, Present & Future of Home Prices | Keeping Current Matters

Bottom Line

Homes across the country are appreciating at different rates. In Riverside right now homes are appreciating slightly below the State average at about 5.6% per year. If you plan on relocating to another state and are waiting for your home to appreciate more, you need to know that the home you will buy in another state may be appreciating even faster.

Real Estate is truly a local market.  What is happening across the nation, may not necessarily reflect what is happening in your local area.  Even markets within a 60 – 100 mile radius can vary drastically.  When you’re looking to sell your home, or purchase a new home be sure you meet with a local real estate professional who can help you determine your next steps in your marketplace. The Ransom-McKenzie Team specializes in Riverside.  Give us a call today to receive a free evaluation of our local market.

Happy Mother’s Day!

As families celebrate Mother’s Day across the country, I’m preparing for an open house at one of our new listings. I know it seems like it is a bummer to have to “work” Mother’s Day, but somehow it doesn’t seem so bad. Mostly because Connie is my mother!

Awards Photo

It is a pleasure and a privilege to be able to work with  my mother every day.  Not everyone is lucky enough to have such a strong relationship with their mother.  It is what makes the Ransom-McKenzie Team strong.

Join us today at our Open House from 1-4pm at 1367 Ransom Road.  We look forward to seeing you there.  We’ll even have a surprise for the mothers who stop by!!

Check out our video tour of 1367 Ransom Road!

Happy Mother’s Day!!

Cosmic Thursday at UCR Tomorrow!!

This is a great opportunity to enjoy one of Riverside’s four College and University Campuses.  This program is the second lecture in the Public Talk in Astronomy series through UC Riverside’s Physics and Astronomy Department. This event is free to guests and visitors to the University.

Professor Bahram Mobasher will present his talk, “Let There Be Light: The History of the Universe from the First Billion Years to the Present”.  This is a fascinating lecture and includes star gazing after the talk.

Let There Be Light

New Listing 6093 Pachappa Drive

ImageWelcome home! This 3 Bedroom, 2 Bath, 1710 square foot home is waiting just for you! With full upgrades including hardwood floors, newer roof, high end dual pane windows, updated bathrooms and more this is one you can’t resist.  Listed by the Ransom-McKenzie Team for $294,500.  Click the link below for more pictures and details and call us to see the home in person!

6093 Pachappa Drive


We LOVE Riverside’s Local Shops!

Heart RaincrossHappy Valentine’s Day!  If you’re looking for a last minute Valentine’s gift, fear not.  Another LOVE we have for Riverside are all of the great local shops in town.  We, along with the City, like to Shop Riverside and keep our spending local.  There are some wonderful local shops that we always look forward to visiting.

Downtown on Main Street is always a fabulous place to go when you’re looking for gifts of any kind.  One of our favorites along Main is Mrs. Tiggy Winkles.  Just peeking in the window gives you a great idea as to all the wonderful treasures that are inside.  The proprietress,  Cee Ann Thiel, always has the BEST Valentine trinkets and gifts.

A wonderful selection of Valentine cards, gifts, and trinkets!

A wonderful selection of Valentine cards, gifts, and trinkets!

The store is on Main street between 6th Street and Mission Inn.

Raincross Pendant

Mardon’s is the best place to find Riverside Raincross Jewelery.

While you’re on Main Street, and you still haven’t found that wonderful gift, try Mardon Jewelers.  They are a family owned fine jewelery store on the Mission Inn of Main Street.  Originally opened in 1961 by Marilyn & Don Harris (see the name there?), this store has been a staple for fabulous jewelry in Riverside ever since.  The current owners,  Jim & Kaye Sweaney have owned the business since 1999 and have kept this local treasure a family owned business.

Our next favorite hang out is the newly opened, Cellar Door Books in the Canyon Crest Town Center.

We welcome a local bookseller to the Canyon Crest Towncenter!

We welcome a local bookseller to the Canyon Crest Towncenter!

We are sooooo excited to see this new bookseller join the Canyon Crest location!  We were faithful customers at Imagine That! and have missed them dearly.  The Cellar Door Books store, is Imagine that plus. They have adult selections as well as fiction and have just started some great programs for youth and adult reading groups.  We featured them in our recent newsletter focusing on some of the Gluck Fellowship events they are hosting.  Stop by when you have a chance!

Simple Simon's, delicious cakes, bread & sandwiches.

Simple Simon’s,  cakes, bread & sandwiches.

Jammin' Bread's eclectic interior is just part of it's charm!

Jammin’ Bread’s eclectic interior is just part of it’s charm!

Last but not least, if you need some sweets from a local shop, we have two favorites in town.  One in Downtown, and one in Canyon Crest.  Our Downtown bakery is Simple Simon’s on the Main street mall.  They are the best place for everything baked downtown.   When you’re done shopping at Mrs. Tiggy Winkles stop by for their famous shortbread jam filled hearts, or the infamous espresso chocolate hearts.  If you’re up by the Cellar Door Bookstore, head into Jammn’ Bread for their great lemon bars and cupcakes.  Either way, you won’t be disappointed.

Have a wonderful Valentine’s Day shopping local!

Real Estate & the Internet

The National Association of Realtors has completed a survey together with Google which looks at the online search habits of homebuyers in today’s marketplace. The results confirm what we have been hearing from our clients for quite sometime.

Nine out of ten homebuyers today rely on the Internet as one of their primary resources, and 52 percent turn to the web as their first step.

Here are some other fun facts from the survey:

5 Top new home buyer activities on mobile devices

1. 51% – Read general home information
2. 48% – Get directions in order to visit a home
3. 44% – Compare prices
4. 35% – Compare features
5. 35% – Search a listing company’s inventory

Places where new home buyers use their mobile devices

77% – At home
31% – At work
28% – While waiting in line
27% – At a restaurant
26% – At someone else’s home

Days of research before the new home shoppers take action on a site

40% – 120 days
17% – 60 days
7% – 30 days
4% – 3 weeks
3% – 2 weeks
5% – 1 week
24% – same day

Obviously today’s homebuyer is utilizing the internet to do extensive research prior to making a home buying decision. The Ransom-McKenzie Team believes that the Internet is a very valuable resource for our clients. However nothing can replace the value of a local Realtor who knows the market that you are going to purchase or sell your home in. There are some things, even the Internet can’t help you with.

Ghost Walk Tonight!

Every once in a while we have to toot our own horn. Especially when it coincides with a fun event that is happening in Riverside. This weekend is one of those events! California Riverside Ballet’s GHOST WALK is taking place tonight and tomorrow night. What makes this even more exciting for us is that the Ransom-McKenzie Team is sponsoring a story for these evenings of haunted stories. In fact, Charlotte’s son Jared will be performing on the Dark Dreams tour together with his North High School theater friends.


Friday & Saturday, October 26th & 27th

If you’re not familiar with Ghost Walk, you’re missing out! Downtown Riverside becomes a spooky, happening place for this annual event. Charlotte’s son is not the only one participating in the telling of ghoulish stories. There are six different tours to choose from each night. The tours take about one and a half hours to complete and each one offers sneak peeks into some of Downtown Riverside’s oldest and most historic buildings. Another added bonus is the special dance presentation which opens every tour. Participants may also return to watch more than one of the multiple dances that will be presented each night.

In addition to the tours and dance performances, the Main Street Mall (between 6th & Mission Inn) will become a Midway Carnival from 5:30 – 9:30pm each night. Tours leave from Main the Main Street Mall about every 20 minutes from 6:00pm until 11:00pm. Some tours are sold out, so you’ll want to call ahead or book online to reserve your space now! Tickets are only $15.00 and there are group discounts available. Visit the Ballet’s webpagefor more information or call 951-787-7850.


Well, thank you! We enjoy bringing knowledge of Riverside to our friends. It is part of what makes our “job” so enjoyable.