Hi, It’s been over two years since the last blog. There really hasn’t been much to blog about, but things are a changing again, so here I go.
The real estate price has risen quite a bit with very limited supply exceeding demand–thus “nice properties” coming on market becomes a bidding war right after it hits the market. On the other hand, properties with blemish or having some defects and are not truly move-in-ready seems to sit on the market for a very long time.
The interest rates are still at an all time low. But with the US economy improving (and the stock market constantly hitting new highs) their is the ugly inflation fears entering in the market. If inflation comes in, you can expect the Federal Reserve to be increasing the interest rate and thus leading to the increase in the mortgage interest rate. It is currently deemed safe until about this summer to expect the interest rates to be low, but there is no assurance beyond that. So, if you are thinking about buying a house, now is the time to take action.
Another peculiarity about the market is that the First Time Buyers are usually about 40-50% of all sales–but is currently around 20%. So, the younger generation are either not buying houses or can’t afford to buy houses. This is going to distort the housing market going forward.
Attached below is the mortgage rate trends. You can see that 30-year fixed is at a very low level.
Buy soon to get a good deal!
James' Real Estate Blog 