Are We Headed Toward Another Housing Bubble?

What’s going on in our market as we head into fall? We may be heading for a shift, but I can say with certainty that we’re not headed for a bubble.

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Buying a home? Search all homes for sale on the MLS

Today I wanted to stop by with a market update to talk about the current state of the Northern California market and answer some of your questions.

The weather is changing, but the fall market is doing great like it has been all year. There is talk that the market may be shifting, however, because there is some concern over high home prices. We don’t know where the market is going, exactly. One thing I’m sure of is that we’re not heading toward another bubble because this is nothing like 2006.

So what’s the difference between that mid-2000s market when we had the housing bubble and what we’re seeing right now? For starters, there is not a lot of fraud going on right now like there was back then. There are four key factors to consider as well, starting with the price-to-rent ratio, which is about 18% lower than it was in 2005. The price-to-income ratio is also about 12% lower, meaning homes are more affordable for people than they were in 2005. Additionally, the percentage of mortgages for purchases is 15% lower, so there is more cash in the marketplace. Finally, there is about 50% less house flipping happening.

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One thing I’m sure of is that we’re not heading toward another bubble.

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As for questions we’ve received from viewers, well, we have enough for the next 10 installments of our video blog! We appreciate you reaching out to us with topics that interest you. The question I wanted to answer today is, “Is the current pace of home sales sustainable?"

We have had a massive increase in the last five to seven years, but the bottom line is that we are still nowhere near the amount of homes that were selling in the bubble, and we’re on the same pace that we were on before the bubble, not during the bubble. If you want to avoid any risk of a potential market shift, I would suggest meeting with me now to discuss what it would take to get your home sold.

Finally, I wanted to end things on a happy note with a fun story about some clients who recently got married. They each had their own home, but were able to put them on the market and sell them for more than they were expecting. They were then able to put that money toward buying a great house together, and it was simply amazing.

Thanks again for submitting your questions; we encourage you to keep doing so. If you have any questions for us or you’re thinking about selling or buying a home, give us a call or send us an email. We look forward to hearing from you!

Announcing Some Big Changes for Our Team

We have a couple important announcements for you today. Stick around to see what they are.

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

In these monthly market updates, we will be talking about the current industry and answering all of your questions about real estate.

I’ve been in the industry for 16 years now, but I’ve lived in Northern California my whole life. I got into construction at a young age, then shifted my focus more towards real estate once I decided I didn’t want to swing a hammer every day. It was my entryway into something different. I’ve always had a passion for growth, so I combined the two. Back when the market turned, I decided to get my license. Since then, I have become the broker and owner of the entire company.

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I shifted my focus from construction to real estate.

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We are excited to announce that we have just launched our own independent company called Aspire Real Estate. It’s the same trusted Cory Meyer marketing system, but more focused on helping others in the community because we are no longer dealing with big franchises.

If you have any questions for us that you would like answered in an upcoming market update, give us a call or send us an email. We would love to hear from you.

Now Is a Great Time to Be in the California Real Estate Market

Right now is a very exciting time to be in the real estate market. In fact, we are on pace to get the highest number of sales since 2007 in the U.S. Usually, the market is either a buyer’s market or seller’s market. However, low interest rates and low inventory have created a perfect storm. Whether you are buying a home or selling a home, now is a great time to be in real estate. To learn more, watch this short video!

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

Right now is a very exciting time to be in the real estate market. In fact, we are on pace to get the highest number of sales since 2007 in the U.S.

For buyers, now is a great time to be in the market because interest rates are so low. As a buyer, you really want to make a smart decision, as prices will continue to go up. If you can find the right home, get the right interest rate, and figure out the right mortgage payment, now is a very smart time to buy because interest rates are once again near historic lows.

Usually if the market is good for buyers, it’s bad for sellers. However, the market is actually in a perfect storm. Inventory is very low and demand is very high. Since so many people are entering the market to take advantage of low interest rates, home prices are going up, making now a great time to sell. In other words, being in the real estate market is a win-win situation for buyers and sellers!

If you have not yet purchased a home, there are a few steps you can take to begin the process. We recommend meeting with a qualified mortgage professional to figure out your ability to purchase. Most people make the mistake of thinking that they will get pre-qualified after they find a home; don’t do that. Get pre-qualified now.

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Whether you’re buying or selling a home, now is a great time to be in the market!

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Even if you are not buying a home for another year, getting pre-qualified alerts you to any credit issues you may need to resolve. That way, you can put yourself in the perfect position to buy at the best possible rate and with the best possible loan product. We can set you up to get pre-qualified before you start looking at homes.

Recently, we helped a homeowner who was trying to sell his property ‘For Sale By Owner’ for a long time. We went in for an interview and showed him our marketing plan. We listed the home for more money that he did in order to cover commission and closing costs. We wound up netting more money for the seller than he would have gotten on his own, and we sold his home in five days!

If you have any questions about our current market or how we can help you meet your real estate goals, give us a call or send us an email. We would be happy to help you!