What’s Going to Happen?
Forecasts about the Bay Area housing market are a subject of much debate these days. It seems like there has been no end to home prices continuing to escalate, no matter who is in the White House or even amid rumors of a looming recession. Or so it seems.
Forecasters are in a somber mood about the Bay Area market. In recent years, the tech industry has spawned thousands of jobs and attracted persons from all over the country and the world while paying them top salaries. Startups abound throughout the area and dreams of going public or getting bought out are strong, regardless of the slim chances.
Even with salaries that would make you a king in Peoria, we live in arguably the most expensive place in the country, The San Francisco Bay Area. Techies are 3 or more to a house or apartment and sharing bedrooms or converting living rooms. Or they just stay at home with their parents if local. So, is economic growth expected to continue to rise along with home prices to unfathomable levels?
Nothing lasts forever. According to reputable forecasters (read more about what they have to say here), the high tech boom is not going to last forever. Unlimited job growth will end and the economy is due for a cooling trend. As to whether it will be similar to past busts remains to be seen, but it is coming and probably within the next 4 years.
Interest rates are expected to go up, so it will be a bit more difficult to buy a home or perhaps to sell one. But there are buyers out there and inventory is not exactly busting at the seams so sellers may still have the upper hand. (Read more here about how easy it is to currently get a loan)
There are also rumblings that Dodd-Frank will be either repealed or compromised by the Trump administration so as to render it ineffective. Dodd-Frank refers to financial regulations that were instituted in response to the banking industry abuses that led to the subprime mortgage crisis and the financial slump in 2008. If repealed, banks will likely return to easier credit and lending standards and you may benefit as a result.
There's always the risk of abuse and a return to the crisis that left so many underwater and in foreclosure. The lesson is to have a lender you can trust, understand your contractual terms and have the financial means and ability to make your payments.
We have trusted lenders, financial advisors, inspectors and tools to help you find home in the right neighborhood for you. We also have an arsenal of marketing tools to help you sell your real estate investment for top dollar. Just reach out to me? I'm ready to get to work when you are.
When buying or selling a home, contact Steven Elias for the best Realtor negotiator in Contra Costa County.