HOW SHOULD WE LOOK AT THE CURRENT REAL ESTATE MARKET?

PART II OF II... THE END...

I just read another post on Facebook. It said, “What if I told you buyers will still purchase and won’t back out of a market just because interest rates trickle up. Rates are still historically low, and we as agents, need to provide the best information to our clients. Prices will not fall, there is no crash, the market has been correcting itself for a while now.”

That is true for buyers or investors who can afford the monthly payments of a 6% mortgage. Unfortunately, not many first-time homeowners or people buying their second home cannot afford those payments. We have all been spoiled by the interest rates over the past few years. But, as I have said many times before, the economy, including interest rates, is like riding a roller coaster. It goes up and then down and it repeats itself over and over again. I am 75 years old, soon to be 76, and I’ve seen it all before. They say that history repeats itself, and it sure does.

So, don’t panic and stay away from purchasing real estate for your personal use or for investment. Look at what the money is costing you and how much you will make as the property appreciates. Reread the paragraph from the Facebook post. Make smart decisions. And, you have to remember one thing. Well, you have to remember a lot of things but remember this ONE! The price you pay for real estate will stay the same forever, but the financing can and will change your interest rate and your payments as soon as the interest rates come down because you can always refinance.

My name is Paul Levine, and I am a Commercial Realtor, a Real Estate Advisor, an Investment Advisor, and an Income Tax Consultant!!! You can call me at (818) 298 – 4000 after 10 AM Pacific Time Monday through Friday and, yes, even on the weekends. Or you can send an email to me at [email protected] and I will always try and answer you in a timely manner.