Are We at the Top of the Real Estate Market?
Filed under: Temecula Real Estate
One of the most common questions that I am getting right now is regarding the trends in the real estate industry: Are we at the top of the market? I completely understand people’s fears about buying a home. We’ve come off our lows and enjoyed a nice bump in the real estate values.
Why Buying a Home is a Good Idea
In my opinion, it is still a good idea to buy a home. Here are a few reasons why:
- Fully Amortized Mortgages: Most mortgages now are created to be fully amortized, which means the homeowners have no choice but to pay down the mortgage every month. As a result, homeowners are in a more stable position regarding the ownership of their homes. So, there won’t be a wave of people who need to refinance because they are in adjustable rate mortgages and have no other options. This problem happened in the past, but we aren’t currently set up to face these same problems again.
- Other Investment Vehicles: Look at the trends of other investments. For example, the S&P 500 has almost quadrupled compared to its low in 2009. Another way to look at it is to see that it has almost doubled its previous all-time high. As a comparison, the real estate prices in Temecula aren’t even near the highs that we enjoyed in 2006 and 2007. What does that mean? I think it means that the real estate market has room to grow even though other investment vehicles are reaching their maximums.
What does it all boil down to? Housing may be arguably the last asset class that you can jump into right now that has room to grow.
Are you interested in learning more about how you can benefit from a real estate investment? You are always welcome to talk to me for more information about this topic. I’m here to help! Call, text, or email if you have questions or you would like to learn more about the options in the Temecula real estate market: (951) 473-0390 or [email protected]