What’s Going On With Real Estate?
How are mortgage rates?
This week, rates for a 30 year fixed Conventional loan with 20% down were around 3.25%.
What’s on the market today in Alameda?
5 new listings (on the market under 7 days)
19 Active listings (on the market for 7+ days)
- 5 properties have been on the market for 7-14 days
- 4 properties have been on the market for 20-30 days
- 5 properties have been on the market for 31-40 days
- 5 properties have been on the market for more than 40 days
How do things compare to last year?
As we compare things to how they were this time last year, the sharpest contrast is the number of properties sold. 7 properties that closed escrow (6 for over list price and just 1 for under list price). During this same week last year, 12 properties closed in Alameda (8 over list price, 2 at list price and 2 under the list price).
What do you think will happen to housing market in the next few months?
My friend Jay Voorhees, of JVM lending, is someone I trust when it comes to forecasting. Here’s what he anticipates will happen. Points #1 and #2 are happening now. #3 and #4 are his predictions for when things move towards normal.
- Flexible Sellers: Sellers who need to sell are suddenly much more flexible, so it seems that there are deals to be had for qualified buyers.
- Low Conforming Rates: Conforming and FHA interest rates are at all-time record lows so it is a great time to lock in a super low rate.
- Demographics: I blog about the coming “boom” in housing relatively often. This is b/c the demographics will not change no matter what happens to our economy. The number of household formations will vastly exceed the number of new homes coming on the market, so prices will have to rise at some point b/c demand will significantly exceed supply.
- Inflation: We have not seen inflation for years and will not for several months. But, as Rich Karlgaard (from Forbes) pointed out in this recent column, when the Fed creates $4 trillion of new money out of thin air (like they just did), inflation seems all but inevitable at some point. And one of the best inflation hedges around is residential real estate.
Jay’s thoughts and projections are interesting. The shift that has started in the housing market will continue to change the landscape of buying and selling. How and when we will rebound is something still too soon to tell.
Friends, have a great week. To those celebrating Passover or Easter, have a wonderful holiday!