Interest Rates and Inventory...What To Do???

Well, as interest rates slowly creep back up so is our inventory.  While by most recent standards rates are higher (A/O 6/27/13 4.46%)  we want to remember those lows of 11/2012 when they hit 3.31%.  But back in November we had very little inventory and very little activity outside of the "all-cash buyer".  But, many of you remember the days back in 1981 when rates skyrocketed to 18.63%.  Although that was an unusual high - hovering in the 6-8% range has occured for the first decade of this century.  Yes, as rates creep up your buying power shrinks...so now is the time to go looking.  Inventory in Orange County, CA as of 7/3/2013 was up to 4,727 units.  The low end of the market is shrinking while the upper ends continue to show growth.  The largest sector of the market locally that has grown is the properties in the $500K to $750K price range which has increased 74% since March of this year.  With the increase in inventory we will see a less crazy, more normal housing market which is really what we want and need. 

What I hear many people saying is that we are in a new "housing bubble".  While housing prices are not going to go crashing down anytime soon, as more sellers add to the inventory, the housing market is becoming more balanced and appreciation will slow down.  Higher interest rates will also encourage that balance.