Is the market heading for a New Bubble?

Is the market heading for a New Bubble?

How about just a bit cooling?

Prices are still rising, at a more practical pace than the double digit over the spring and summer months.

That’s OK!!

Home prices appreciation have always outpaced the banks and most investments and add in tax-benefits. It’s one of the best investments you can have.

Homes are NOT ATM’s

Real Estate for most consumers should be bought and held, Not bought and flipped.

Mortgage companies are just that, Mortgage companies, they help you with getting the best loan for your investment.

Mortgage Loans are NOT ATM’s

Most zip codes that I check out through out Southern California, (and I have done this for many years), show increases in prices and slight increases in sales, this year, depending on location.

This should continue for the rest of this year and into 2014.

Homebuyers say rising rates are making it more difficult to buy a home in today’s market in a recent survey.

Shoppers are now becoming BUYERS.

Furthermore, 63% of correspondents say rising mortgage interest rates are making it harder for them to afford a home.

Rates will be under pressure to rise, your payment is more than last year and less than next year at this time. (Think about that.)

Meanwhile, 58% of buyers cited low inventory as a major concern, falling from 66% of respondents last quarter.

The survey results underscore buyer sensitivity to this summer’s mortgage rate fluctuations, and should interest rates spike again in the coming months in response to a tapering by the Federal Reserve of asset purchases, we could see a significant drawback in buyer activity.

The survey included data from 1,722 homebuyers in 22 U.S. markets.

Condo’s continue to out pace houses in appreciation. Mainly because of the lower prices. There are more buyers in that price range and condo’s are good for investors who buy and then rent them out.

For more information about Southern California Housing market, contact our team at United Empire Realty.

Do you have the tools to face this new Challenge? We arm our agents with the skills.

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