Are We at the Top of the Real Estate Market?
Filed under: Temecula Real Estate
It is smart to consider real estate market trends when buying or selling a home. Many people have been asking me: are we at the top of the real estate market? Today I want to compare 2008 to 2018.
In 2008, we had:
- Negative amortization loans
- You could get a loan a day out of bankruptcy
- Interest-only loans
- Adjustable rates
These points are among many other factors that contributed to a 30 – 50% increase in a 12-month period. This trend was just not sustainable.
In 2018, we were on the tail-end of:
- 30-year fixed mortgages
- Fully amortized loans
- Loan officers really dug into tax returns to determine income
The result of these changes in the industry is that we enjoyed about a 7 – 8% increase per year for the last 9 years or so.
My Opinion on the Current Market
All real estate experts have differing opinions about the future in the industry, and only time will tell what happens to home prices. In my opinion, I don’t think we are headed to another real estate crash. But I think it’s possible that we could have a market correction or a slowing down effect on home prices.
Rest assured that we don’t have the same platform that we had in 2008. So, I think housing will remain stable for years to come. If you have a long-term vision for buying a house, then I still think it’s an excellent choice.
Long Term Strategy for Real Estate
The key is to remember the equity that builds over time when you own a home. Even if the market slows down, the home value can continue to increase with time. As you pay down the mortgage and the value increases, you are building a financial asset that your family will own eventually. This long-term strategy is a great way to prepare for retirement and other big financial decisions in the future.
When you are ready to find a family home, then I am here to help. Talk to me about your options for Temecula real estate. Call, text or email: (951) 473-0390 or [email protected]