December 2, 2020
By Saeed Ghaffari
Interest rates kept low throughout the Thanksgiving Holiday and are expected to stay low for the remainder of the year. While we have no crystal ball to see what will happen to the rates in the future, we know these are historical lows. This means if there were to be changes to the rates, it’s more likely to be in the upward direction.
Aside from the rates, we expect the effects of the pandemic on our economy to start coming to the surface and if that happens, the outlook for property values is not positive.
With the above in mind, if you have not taken advantage of the lower rates to refinance your property, it’s time to do it now.
Mortgage Concierge is a loan advisory service connecting the borrowers to vetted lenders. Please reach out if you need help.
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714 469 5529
Something big is happening in the U.S. housing market—here’s where 27 leading research firms think it’ll take home prices in 2023
Something big is happening in the U.S. housing market—here’s where 27 leading research firms think it’ll take home prices in 2023 Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS...
California Buyers Still Can’t Afford Homes
The issue for California residential real estate remains the same. Poor affordability means that despite latent demand, buyers can’t afford the prices of homes in the Golden State. For that reason, many have left to find much cheaper homes in other states. Unemployment will likely be on the rise along with lower business profitability (tech sector continues to lay off workers) which means fewer buyers are likely for 3 to 6 months.
The stronger consumer optimism is running against sticky inflation and a likelihood the FED can’t lower interest rates. But will that discourage buyers in California? Demand is always intense in CA. No other place offers what California has, and buyers today do seem to put lifestyle at the top of their list.
The luxury housing market, like most other real estate sectors, is adjusting to a slowdown. Affordability and home size are every bit as much on wealthy buyers’ minds as other consumers. “The reality is we are coming out of one of the best real estate markets in history,” Gary Gold, a luxury property specialist with Coldwell Banker Realty in Beverly Hills, Calif., notes in the latest Coldwell Banker Global Luxury Trends Report. “But that level of demand and price appreciation wasn’t sustainable.”
Nearly 90% of respondents to the Coldwell Banker survey say they believe the real estate market will be better than or the same as 2022 for property investment. The following emerging trends were noted in the report.