Tag: buying a home

Real Estate

Is this a Good Time to Sell or Buy My Home?

Lupe Ruiz, REALTOR®/Broker

Volatile interest rates, inflation, and a reset in housing probably have you wondering if it is a good move to sell or buy your home right now.  Interest rates have been going up; housing prices are still at the highest they have ever been; and the media is announcing a housing crisis.

So, what now? Well, first of all, consider all the data before you listen to discouraging reports…there is a greater chance we will have a housing reset and not a housing crash. Secondly, determining whether or not it is a good time to make a move depends on your individual needs. Are you relocating? Are there health or financial reasons? Is there a life event? Or, are you simply tired of paying someone else’s mortgage?

Buyers — Yes, interest rates are higher than a few months ago. However, they will eventually go down again; and you can refinance to a lower rate. And, if the value were to go down (which is not expected any time soon); it will eventually go up again as well. If you are planning on living there long term and you can afford your mortgage payment; a change in value would not be relevant right now.

Sellers — Yes, if you sell now for a higher profit, your replacement home will also cost more than before the inflation creeped up on us. Nonetheless, consider that this is relative; and you can use the equity you gain from the sale as down payment on your new home. If you are concerned about closing and not having a replacement home, consider negotiating to stay some additional time after close of escrow.

I hope this helps to answer if it is a good time or not to make a move.  It might not be the right time to purchase an investment property. However, it could be the right time to buy your home. Your story is different from your neighbors’ so what is right for you, might not be right for them and vice versa.

Real Estate

Has COVID-19 Affected California Real Estate?

Lupe Ruiz, REALTOR®/Broker

Many are wondering how the real estate market will be impacted with all this uncertainty. In March, the unemployment rate in California rose to 5.3, which was a 1.4 jump from the previous month — this means a lot of people are either completely unemployed or their hours were reduced. So, it’s understandable that the real estate market will be impacted somehow. The question is how much and for how long.

The California Association of Realtors has been following the trends and recently released the following sales and price report:

This chart means the home sales decreased in March and, as of the date of this report, they were expected to be even lower in April. However, according to their research, median home prices increased. This could be as a result of less inventory. If less homeowners put their homes on the market, the demand becomes higher. Since interest rates are still at their lowest, serious homebuyers are searching for homes. Therefore, there is demand and prices increase.

So what does this mean for you? If you are a seller who has been on the fence about selling, this is the perfect time to sell because you have less competition and there is still demand. If you are a buyer, it is also a great time to buy because interest rates are at their lowest –the lower the interest rate, the lower your mortgage payment and the higher your buying power.

C.A.R. Sales and Price Activity Report

I believe the length of time these trends will continue will depend on how much longer the pandemic affects unemployment. This is a public health crisis, but unfortunately, it is impacting the economic stability of our nation. As of right right now, if you are in a position where you can sell or buy, I would recommend you do it. This pandemic is changing everything every day if not every hour, so waiting too long to see what happens, could be a costly decision in the future.