The Federal Reserve says they are definitely, positively going to raise interest rates.

Check out this article from today's L.A. Times.  Click here for link.  Yup, the Fed now says that there is no doubt they'll raise interest rates, and soon. Nooooo!  The good news is that the rise will come gradually, so it doesn't shock the economy.

What that means for home buyers: interest rates have been gradually inching up this fall anyway, but it means that buyers will have higher mortgage payments than in the recent past.

What this means for home sellers: there will be fewer buyers, especially for starter homes and condos.  There probably may still be multiple offers on properties, because inventory is short.  However, if a house for sale sits on the market for more than a few weeks, a price reduction is probably warranted.

Home buyers and (some) home sellers are coming out of the woodwork in the San Fernando Valley

Something must have happened during last weekend's rockets' red glare, because all of a sudden, everybody I know is busy with several sets of home buyers and some home sellers.  What happened to you, people?

Perhaps buyers realized that lots of home prices might come down a bit in the next few months.  That often starts to happen in early July. Maybe sellers realized that prices have peaked for the year, too.  And then, interest rates are still low and haven't seen the predicted rise.

Nobody can predict the market, but I would recommend that sellers sell now, especially in the areas of Burbank and Studio City -- people want to buy homes in good school districts before their kids start school.  And, if interest rates do go up, as all experts predict they will by the end of the year, that will have a negative effect on home prices.  And I would recommend that buyers buy now -- interest rates won't be this low much longer.