Is a recession coming?
It's a great day at Jose Perez and Associates. My name is Jose Perez. I'm here to give you an update for the month of August. There are three topics I want to share with you guys today. Number one is recession and what that means to real estate. Number two is interest rates and what are those doing that are impacting our lives today. And number three, is this a good time to buy or sell?
Recession and real estate
Number one, I want to jump right into recession. If you watch CNN, constant negative news, that's probably what it should stand for. They keep talking about the US going into recession. Now, first of all, most people, they automatically equate recession with the housing crisis and they don't mean the same thing. Recession is when the GDP goes down for two quarters in a row and when that happens, we're considered to be in a recession as a growth domestic product. So real estate, 3 out of the last 5 recessions, real estate property values have actually gone up. The only reason why most people equate those two is because the last recession that we were in was actually caused by the real estate and mortgage market. And that's the reason why property values went down significantly during the last recession. But keep in mind, most of the time, a recession is actually a good thing for real estate because investors, people with money, they end up pulling the money out of the stock market and other things like that and they put it into real estate. So make sure you're in tune with that.
How low are interest rates?
Number two guys, interest rates, they are super low. I think they're going to the lowest they've been in 4 years. Whether you're looking to buy right now using FHA or conventional or VA, whether you're looking to refinance, interest rates are low. If you're thinking about doing any of those, give us a call. We will connect you with a great lender that would get you guys that lowest interest rate lowest down payment, lowest monthly payment, and take good care of you guys.
Is this a good time to buy or sell?
Number three, is this a good time to buy or sell? Guys, no matter what you do, if you buy a property today, 10 years from now, you're going to be really glad you did. In fact, what I'm saying is double down by three properties if you can, because at the end of the day, with appreciations being forecasted to go up 3% to 4% every year for the next 4 to 5 years, I think this is a great time to buy. What better place than here in America. If you guys know anybody that might be looking to buy, sell or invest, give us a call 951-444-5811 or visit our website to check out all the latest listings at www.joseperezandassociates.com.