“A stronger economy, more jobs, lower unemployment, and higher wages will power demand,” says Smoke. “Higher rates will also likely help loosen credit. Those positive conditions coupled with demographic tailwinds from millennials and boomers will keep the U.S. housing market healthy and strong for at least two more years.”
Sourced through Scoop.it from: www.dsnews.com
I understand headlines like this will grab our attention. There is no doubt this crazy election is going to make us all shake our head and wonder what will happen?
Bottom line, not much has changed in the Bay Area in the housing market except affordability. However, high rents keep people asking themselves, “Shouldn’t I buy and build my own equity instead of paying this high rent and no tax benefit?”.
We do not have enough inventory to meet demand, so appreciation will continue. No rise in interest rates keep demand high. Basic demographics and job growth fuel demand. Pieces that are missing, are higher wages and better municipality planning.
There most likely will be a flattening of appreciation in this next 6 months. But let’s be clear we are talking about single digit appreciation verses double. Then again, this may simply be the summer doldrums.
Watch the election, watch the rates, but also keep watching the market. Buying a house in this market is only for those looking hard. If you need someone to help you look, let me know.