My name is Jose Perez. I'm here to give you an update for the month of January. First, and foremost, Happy New Year. 2021 is here. We're here to talk about three topics. Number one, we're going to talk about recession versus home appreciation. Number two year over year equity gains and what that means to you. And finally, number three, I'm going to take my crystal ball and share with you guys what I think will happen this year of 2021.
Recession versus Property Values
Number one, last year, we shared a graph with you that showed the last five recessions and what that did to property values. Now we're pretty excited because we're dead on. We have the updated information and as we're getting out of the last recession, we can show you the last six recessions and I can share with you guys confidently that over this last recession, property values still went up 7.3%. Just showing that buying real estate is still a sound investment.
Property Values On The Rise In The Long Run
Number two, for those buyers working with us now, or those planning to take advantage of homeownership in 2021. I want to share some exciting news with you. Over the next five years, property values are going to continue to go up, and let me give you this example. A home sold at $300,000. Now over the next five years, it will appreciate $54,000. Nowhere else besides real estate, can you get a return that great. In addition, I want to share this chart with you guys that shows last year alone in California, property values went up $34,000, even during a pandemic. That was the second-highest appreciation in the nation.
What About Property Values This Year?
Number three, I'm gonna take my crystal ball and share with you guys where I think it's going to happen for 2021. Now we take all the experts and we figure out what they think property values are going to do over the next 12 months. Guess what guys? It's pretty much everybody thinks it's going to go, about 6%. I think Southern California is going to be a little higher than that. I particularly think that the second half of the year is going to be crazy for property appreciation. In addition to that interest rates are still at a record low. I think we're going to start going up a little higher, but right around 3% over the next few quarters. If you're thinking about buying a house, do it now, rates are low. You're thinking about refinancing your house, do it now rates are low. If you guys have any questions in regards to buying, selling, or refinancing, please reach out to us at 562-646-6321 or 951-444-5811.