Here we are already past tax time. This year is going as predicted by most in an upward trend, somewhere in the 4-5% appreciation. Overall things are looking healthy for the economy and our real estate market. There are certain factors that shouldn't be ignored in this optimistic view point. Jobs! Are we seeing an increase in jobs, salaries? Is it duel income making up the difference in a families household income. How long can prices continue to climb before a simple 3 bedroom 2 bath houses costs more than 48% DTI? I like to be optimistic, but also realistic. I think we have a correction coming in the next year. Another factor to keep in mind is the interest rate. The Feds keep threatening to raise rates but they don't want to upset the economic balance. The rates are artificially low and raising them would in theory be a good thing. Rates in my opinion should be around 5-6%. That should encourage people to save and help combat inflation.
When it comes to buying or selling in our area, clearly now is a great time to sell. We're seeing values in some areas above what the where before the market crash in 08. On the flip side, is it a good time to buy? It depends! With rents sky high, I think it's still a good idea for people to buy a primary residence. Now, investment property I wouldn't recommend right now. I'm looking to buy a rental myself, but I'm thinking I'll wait until I find a good deal.
In other areas there are signs too. The values around San Diego are declining. Property values around San Francisco are so crazy that they're running into appraisal problems. Thanks to the bay area values, our niche market will hold longer than other cities and states.
Looking to buy or sell in Roseville / Rocklin? Feel free to give me a call.