OK...here it is...since I do have a brokerage business than it's my duty to let you know what's going on in the real-estate realm...no matter how boring it it...so let's begin...as we all know...we're slowly becoming a seller's market, and with interest rates staying at these low rates...it's now a perfect time to invest in a home before the interest rate hike, which is speculated to jump as much as 5% by the end of this year. Large cities, for example, have seen their homes in Sacramento, Bakersfield and in the Bay area increased by 60% whereas the homes in the Central Valley only increased slightly, but included in this agriculture industry effect are the low-paying jobs and high-unemployment rates that persists throughout our region, which also enhances the real-estate to be unsustainable.
Now if the forecast of the rising interest rates are valid this can also rise up the monthly mortgage payment by $500 to $600 a month, which supports the trend of homes sales that have occurred in the past 12 years, example,
2005-Home sales peaked in California.
2006-30% fewer sales than 2005.
2007-Home sales dropped another 30%.
2009-Home sales went up slightly after the house market crash of 2008.
2010-More decline in home sales and prices.
2011-Home sales increased slightly while prices decreased.
2012-Home sales increased considerably.
2013-Home sales are slow, but prices increased.
2014-Home sales decreased by 7% from 2013.
2015-Home sales 9% higher than 2014.
2016-Homes sales slightly higher from 2015.
2017-Home sales 3% above 2016.
Baby Boomers will be going into retirement and sell their homes while buying replacements in 2019, and their children (Generation Y) will add to the house sales as they find higher paid jobs and become first-time home buyers.
Mortgage lenders hopefully will loosen their lending standards, but a real-estate prediction indicates that the down payments might be squeezed out by high rent apartments and elevated interest rates.
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