In the past week, reports are that Ben Bernanke announced the Federal reserve will slow it’s bond buying later this year to a gradual stop by next year that cause long term interest rates to be at record lows and unemployment is below the recent high of 10% in 2009-2010 and projected to hit 6.2% by 2015, thus signaling the end of rock bottom interest rates for 30 year Mortgages, at which time rates will start increasing. They have actually started going up at this writing. In the meantime, as long as Bernanke can do the same thing Nik Wallenda did at the Grand Canyon through 2015 balancing inflation and unemployment, then all will be good. The minor details of capturing the latest defector of espionage and avoid resulting consequences of this gaffe, then terrorist attacks or other world calamities are the only other issues to disrupt our financial system crème de la crème!!
Thank you IRS for your controversial focus in coming down hard on political backed groups dividing Republicans and Democrats again, as a result of the groups that were backed by each party and now being rewarded with $70M in employee bonuses, wow! Could this mess, once sorted out, cause a whiplash in the economy and the Real Estate markets, HELLO!! The White House could be accused ultimately of using this platform that paved the way for reelection and will hopefully weather this new storm and not be implicated for the whole mess to begin with! See this article.
Back to our Real Estate market in general, the San Diego region, along with Los Angeles and San Francisco- is now setting the precedent with consistent strength in the housing recovery for California. In this report, it states: “The recovery is definitely broad based. The two composites showed the largest year-over-year gains in seven years. Atlanta, Las Vegas, Phoenix and San Francisco posted year-over-year gains of over 20% in April. San Francisco was the highest at 23.9%. Phoenix posted 12 consecutive months of double-digit growth. Recent economic data on home sales and inventories confirm the housing recovery’s strength. Los Angeles, San Diego and San Francisco posted their highest gains since 2004, 1988 and 1987, respectively. The article states more Shocking News: As of April 2013, average home prices across the United States are back to their early 2004 levels for both the 10-City and 20-City Composites. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 26-27%. The recovery from the March 2012 lows is 13.1% and 13.6%, respectively.
San Diego is far from the 2004-2006 levels in value, however the upswing trend is not farfetched, will continue and possibly reach those levels by 2015. This is absolutely a POSSIBILITY and at the same time it is a huge GAMBLE. As a seller, you ask yourself: do I continue to hold out for values to go higher, while interest rates are going up or do I pull the trigger now and avoid another crash, also expected to come again, by selling now? While you’re thinking, does the thought of GREED cross your mind as well? Selling now is more optimum, obviously considering interest rates are starting to creep up now, so your purchase of a new home will be manageable with a great interest rate. A Listing agent to represent you with creative ways to leverage your bottom line is optimum.
For the buyers, does this market cause you to be in a mindset of desperation because of no inventory? Aligning yourself with an experienced Buyer agent who can maneuver through the mind fields to secure your property in a very limited inventory market is optimum. “All cash” buyers are still KING and have the most POWER, while being set up to be protected for a future inevitable crash as our cycle takes its normal course.
Thanks for reading, Happy 4th of July, AND God BLESS America!!