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What is REALLY happening in our Real Estate Market?

What is REALLY happening in our Real Estate Market?

Tom Ferry interviewed Steve Harney, CEO of Keeping Current Matter – a website that follows LOTS of economic indicators, RE institutions, analysts, and trends. In the interview, Tom asked Steve “Are we headed into another 2008?” Steve’s short answer, ” No, it is just that inventory has increased and prices have leveled off because of the competition of homes now on the market which our market needed to continue having a healthy market.

Tom then asked, ” Are we headed into an economic downturn?”
Steve’s answer, ” At some point…but we always have cycles, it is inevitable.”

To hear the entire interview,  Click on YouTube Link above. It’s a great listen.

Graphs that might help you see our historical cycles-

United States Existing Home Sales from before 1970 to almost current

SOURCE: https://tradingeconomics.com/united-states/existing-home-sales

Bay Area RE Cycles 1984-2018

SOURCE: https://www.bayareamarketreports.com/

Median Bay Area Home Prices 1990-2017

SOURCE: https://www.bayareamarketreports.com/

Average Annual Interest Rates Through The Years

SOURCE: https://www.bayareamarketreports.com/

As you can see, there are always cycles. Real Estate dips and then comes back, generally an 8-12 year up cycle with a 1-3 year dip. So yes, we may see a dip in 2020 (which I have been saying for 3 years now) or early 2021 but if you hold tight, it will come back. And remember…

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Look at it this way – You rent a house for 10 years at $1500/mo. Landlord takes care of repairs. Great right? But after 10 years, do you know what you have paid in rent and how much of the landlords mortgage you may have paid down? Try $180,000!!!! Think about it!!!! You could have been paying down your own mortgage and building a nest egg for yourself and your family!

Are you ready to put your housing cost to work for you?

Click Here to Read The Rest The Whole Article
https://123napavalleyrealestate.com/2714-2/

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