Today’s Real Estate Market Climate
03 Aug 2015
In the last few months, we’ve seen a never been seen before “feeding frenzy” in our Southern California marketplace.
Most residential properties have experienced an appreciation of over 18% in the past calendar year. Couple the available inventory with this season of low interest rates—which seems to be near over—and it’s a little wonder our property values have drastically increased from where they were one year ago. In as much as it has been a great time to sell given the nearest “run-up” of valuation, it is still a fantastic time to buy given the low +/- 4%, 30-year fixed mortgage interest rates. But, is it sustainable?
In today’s marketplace, we’re occasionally asked, “If I keep my house for three years, how much will I make?” I may know a few magic tricks, but I’m no fortuneteller. My advice is pretty simple to those of you looking to buy a home. Your home should not be solely viewed as an investment, but a decision based on your lifestyle. If you’re looking for a good investment income property, we can help you find one. Your home should be viewed as your place of privilege, pleasure and solitude. Making sure the home is in close proximity to schools, shopping, houses of worship, and places that enhance and complete your ideal lifestyle. Other questions include, “Is this neighborhood one that looks like it will be able to sustain a quality threshold that is to my standards?” In addition, safety, convenience, and affordability should be discussion keystones in any primary residence equation.
“My advice is pretty simple to those of you looking to buy a home. Your home should not be solely viewed as an investment, but a decision based on your lifestyle.”
Real estate is not a “get rich quick” program, but a “build equity over time” approach to prepare for your future by enjoying many years of appreciation and, at the same time, eliminating debt. What makes America so great is the chance it affords people to move up and improve their station in the world. So, if you decide to sell, get the best offer. If you decide to buy, make sure it’s a great place to live with great amenities. And, in either case, think of Paul Kott Realtors, Inc. to assist you in this important decision. We’re always here to help…because results matter.