Top 3 Reasons To Buy In 2019
Top 3 Reasons To Buy In 2019
1. Real Estate Is Slowly Depreciating
The real estate market of Southern California has experienced a dramatic increase in sales activity over the last 7 years, and it has recovered tremendously since the 08' market crash. In May of 2018, the real estate market finally began showing signs of slowing down. Today, we're in January of 2019, and although we're not predicting another 08' market crash anytime soon, the scales have finally tipped over in the favor of the home buyer in 2019, especially, with interest rates experiencing their lowest point yet since it tipped over the 5% benchmark (it is now at 4.63%, January, 2019) and houses that aren't selling at their asking prices (forcing mass reductions). If you never owned a home or talked to a real estate professional before, you might not have a good handle on what is considered a high price or a low price for a homes unless you go off of "it sounds expensive" by associating the home price with your current financial situation. It is imperative that you keep your real estate advisor close and available so that you understand that if you can afford to pay rent and your credit score is not terribly bad, you can afford to have your own roof over your head, and even if your credit is terribly bad, there are worthy credit repair companies that will go to bat for you to repair your credit so you can qualify for a loan, we can recommend some. Despite everything you have read on here so far, as a homebuyer, you must be thinking to yourself: "there's no way I can afford a home where I live". Keep in mind that some areas of North Orange County, are still considerably affordable in comparison to the rest of the county, and you must consider those areas as a potential not only because they are in the affordable bracket and not only because the market has slowly tipped over to a buyer's market, but most importantly because in the near future, home prices in North Orange County are going to be directly over, under or level with South Orange County prices. So don't shut down a city because you think it's "ghetto"! WHY? (and this is the investor mindset that we want you to adopt when you're buying a home after reading this article) because what happens to "not so nice areas" that are surrounded by "nice" areas? they get developed and improved through our tax money and real estate investors. Look out for cities like Anaheim, Garden Grove, Westminster, Stanton, Cypress, Buena Park, Fullerton, Yorba Linda, Placentia and Anaheim Hills. Some parts of Huntington Beach (north), Costa Mesa (north), Santa Ana and Tustin are to be considered as well, although, the "norther" the better as a homeownership investor. Consider anything north of Irvine and Newport Beach as a potential city to invest in, right now! Certain neighborhoods are better than others, it will come down to having a knowledgable Real Estate Advisor to let you know which areas are due for the biggest growth. Think of the many cool restaurants and specialty food and drink places available compared to South Orange. Think Disneyland, Knott's Berry Farm, Angels Stadium, Poke Bowl places, Boba shops, and keep an eye out for new construction (Shopping Plaza near the Angels Stadium and new luxury apartment communities). Nearly 50% of homebuyers these days are millennials, the demand for great entertainment and a high walking score (ask us about why a walking score is important) in Southern California is growing bigger and bigger. With that being said, all of these areas are going through major development and improvements, if you buy now and hold, you can expect major growth in the future. If you sit out on 2019, you might miss out, and interest rates are not going to tip in your favor any time soon.
So start with these 3 simple steps:
- Get yourself pre-approved to see how much house you can afford.
- Make sure you can afford the monthly payments, do some bill itemizing.
- Start looking at homes!
For these 3 steps, please utilize our credible real estate advisors at 949.383.0001 or firstname.lastname@example.org. Back to the article..
It's historically proven that inventory tends to evaporate very quickly when prices drop, you're going to want to keep in mind that the neighborhood or the city you were really interested in, might run out of available inventory because it's been bought out, and sellers that were too late to the selling party have decided not to sell, for good.
Don't wait to buy real estate, buy real estate and wait!
2. Interest Rates Will Continue To Rise
We all know that interest rates have gone up big time over the last 2 years and that they are still on the rise, but what we may not know or take into account is this; history tends to repeat itself. Take a look at this graph:
Sure, interest rates were high back in the 80's but home prices were ridiculously low compared to what they are now. So in a way, it balances itself out, if you think about it. However, it is not realistically possible for prices to come down to 1980's levels, because almost every lot located in a "livable" area of Southern California has been bought out and majorly developed for human life. People live, work, consume and produce in those areas, home prices should and predictably will maintain their realistic levels, not a 1980's levels. In other words, don't wait or get left behind, buy while interest rates are still historically low, while a growing number of sellers are taking hits with price reductions, and while the inventory is available.
3. A Thing Called Life (Don't Skip This Top Reason!)
Most homes here in Orange County, CA. were built around the 1950's-1970's and were purchased by homeowners that at the time were in their mid 20's and 30's. Today, a lot of these homeowners are ready or getting ready for retirement. The agenda? downsize, re-locate, or with the help of family in a not so planned event, have an estate sale (for reasons like death, as one example). On top of that and in many cases, these homes need an extensive remodel.
Are you seeing what we're seeing here? If not, allow us to paint the picture.
- Prices are dropping (Reason #1)
- Sellers are more open to negotiating because their houses are not selling as high as they had intended them to sell for. Seller season is over! (Reason #3)
- Sellers are in need of selling (Reason #3)
- Homes are in need of a remodel (Reason #3)
What you read above, is happening right now. Not in all parts of California, but in enough parts for you to take advantage as a homebuyer if you are an opportunistic shopper that's ready to attack!
Here at The Skyworks Group,
We treat your Real Estate needs as your biggest investment, whether you're buying or selling.
Info.SkyworksGroup@gmail.com | (949) 383-0001
Disclaimer: This article is provided for informational purposes and should not be relied upon as legal advice. If you would like to work with a Skyworks Group advisor to ask questions or receive advice, please contact us directly.