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 July. There are 3 topics I want to share with you guys today. Number one is interest rates. Number two, what's going to happen in real estate over the next six months? That's the second part of the year. Three, what's going to happen with home prices? Are we going to go up or are we going to go down?
Interest Rates are low
First, let's talk about interest rates. We are at a three year low right now. Interest rates are pretty close to 3% very low 3's, and what that means to you is that, if you are a buyer, you get to buy at a really low interest rate. I mean, Geez, if they get any lower, the banks are going to start paying you to take a mortgage. Now if you're a seller, that means there are more buyers available and there's more demand for your property. So take advantage if you're looking to refinance or purchase, now is a great time.
Whats happening the second half of the year?
Number two guys, what's going to happen the second half of the year. Now from what we've been projecting, we're going to have a little bit of a surge in real estate, more sales and definitely a little bit of appreciation this second half of the year. The first half of 2019 and the later part of 2018 was considered a little bit slow even though it was a great market for us, but at the same time, from what we're seeing with interest rates being low and more inventory, we're expecting a surge of sales for the second half. So take advantage of that, especially if you're thinking about selling right now.
Is a recession coming?
Lastly, guys, I get this question all the time. "What is going to happen with property values? Are they going down?" "I hear we're going into recession." Recession is one thing, and property depreciation is a completely different thing. We've gotten into many recessions here in the United States, and that doesn't necessarily equate to property values going down. So take note of that. Everybody's kind of projecting a recession going into 2020 however, the economists have done studies on this and they're saying that property values will continue going up, or the next three years, however, it will be at a slower pace. So for example, in the last few years, we've been going up at about 6%, 7%. A normal market goes up about 3.6%. We're expected to go up between 2% and 4% over the next few years. However, remember, we are still going to be in the green. We are still going up. So keep that in mind.
Real estate is still a sound investment
Real estate is still a sound investment. If you know of anybody that might be looking to buy, sell, or invest between LA and Palm Springs, please think of us first. Give us a call. (951)444-5811 or visit our website at www.joseperezandassociates.com.