November 3, 2014
Will We See a Spring Bloom?
Last week, the University of Michigan Survey of Consumer Confidence Sentiment Index rose to the highest level in over 7 years. What does this mean to us with respect to real estate?
Real estate prices and the number of transactions done in East County have stalled in the past few months. This is despite the national trend of slowly increasing interest in real estate. Our area has its own set of demographics, preferences, and economics conditions. The Consumer Confidence Index, reaching a level unseen for such a long time signals an improvement in the economy 6 months in the future. To us, this means an increase in real estate transactions, higher prices, and higher interest rates due to the demand for real estate mortgages.
So many people tend to wait until after the holiday season to consider entering into the real estate market this time of year. This is understandable, but it may be a costly decision for Buyers. There are signs that there will be an increase in Buyers in the 1st Quarter of 2015, if you can believe the consumer sentiment.
If this occurs, many Buyers who are qualified to buy today may get squeezed out of the price levels they are looking at today; along with the potential increases in interest rates, you may end up with much less purchasing power than you have today
It has been said “He who hesitates is lost”. This is especially true when presented with the conditions in the real estate market. It is our opinions that while prices are stalled today and interest rates are stable (although there are indications they are beginning to rise right now), this will not be the case in the spring. Sellers will be less willing to negotiate on the sale of their property if there is a surfeit of Buyers.
We feel strongly that beating the potential rush after the 1st of the year will get you more home than you will get for less money right now. Give us a call at 925-308-7045 and we will endeavor to help you save thousands of dollars on the purchase of your home today!