Is It A Good Time to Jump into Real Estate?
The stock market is up. There are improved employment numbers and many “in the know” say it’s a great time to buy real estate. I love a good optimistic half full perspective. It sure beats 1/2 empty. How about, we’re half way? Aside from the stock market and improved employment numbers there are other criteria that affect the real estate market that are also part of the equation and should be considered. Employment needs to improve. Yes jobs are being created but not fast enough. Unemployment in California remains high as it is throughout most of the nation. The State government is broke and they’ll likely be cutting back on services and increasing fees. The cost for education and health insurance is rising and all of these cost increases erode the public’s general discretionary income impacting savings and net income. All of this “bad news” is really about correction. From my perspective real estate prices will remain flat for at least the next few years as the economy grinds through these difficulties, becomes sure footed again, and climbs anew. There are still too many foreclosures that need to work their way through the system, banks need to free up more of their cash and lend, and more people need jobs, all of which are happening albeit slowly.
This does not mean it’s a bad time to purchase real estate. On the contrary, it’s an excellent time. Buyers can take advantage of historically low interest rates and home prices seem to have stabilized. There is plenty of good inventory continually coming available and it is a buyers market. Are prices at the bottom? Close enough. The savings are there and I wouldn’t want to be one to miss out on the low mortgage interest rates.I think buyers will have to realize that there are enough positives and waiting a few years before we see real estate prices begin to rise should be palatable to most. It’s a great time to refinance your home. If you need to move, perhaps to an area with better public schools, closer to work, or if you need a larger or smaller home, this may be a good time to act. So, if you are thinking of purchasing a home or investment property, now may be a great time to jump in. Give me a call and we can discuss your situation and see what may be the right strategy for you.