Hey San Diego, are you ready for our National Market Update?
We are seeing lower interest rates right now than we’ve seen since the beginning of 2018. Interest rates are also expected to remain low through 2021 according to the big dogs like Fannie Mae and Freddie Mac. This means it’s an excellent time to purchase a home.
Lower interest rates means that more buyers are also able to qualify for a home and also more buyers can qualify for higher loan amounts, if you’re selling an upper-end home, now may be a good time to think about selling, because this means that there are more buyers who can actually qualify for a higher priced home.
Now, let’s look at rents. If you track rents from 1988, rents continue to increase significantly. Rents are not going down, but they’re actually going up in small increments up to 3% due to Rent Control Regulations.
I just recently heard the story of a young woman who had been renting in Concord for 20 years, and she had paid $1,800 a month in rents, which is $432,000 in rent. Imagine, that’s the cost of a home. She could have owned that home outright as well as gotten the mortgage write-off, which equates to thousands and thousands of dollars every single year.
Lastly, let’s end with this, all the talk about the recession. Some people are on the fence as whether they should buy now or they should wait to sell. I’ve said this before, and I’m going to say it again until it sinks in. Recession does not mean housing crisis.
Housing prices actually went up in three out of the last five recessions, so don’t let all that worry you. With interest rates expected to stay low and rents going up, now is a great time to buy and sell or buy an investment property, and remember, please reach out to me anytime.
I am always here to help, Let’s Buy and Sell Strategically. My name is Cristobal Jimenez with Coldwell Banker.
#CallCristobal at 619-500-2899 or email me anytime at email@example.com