While the nation is concerned about the effects of a possible recession, it is good to remember that while history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined. By most accounts, it is highly unlikely that we will see any kind of protracted decline in new residential structures that could set off a recession.
Looking at the single-family residential market in two random counties in California, i.e. Alameda and San Joaquin, it becomes apparent that California may be spared the worst of the decline:
Alameda County:
Median List Price: $900,000
Average days on Market: 94
Inventory: 587
Price increase: 3%
San Joaquin County:
Median List Price: $555,000
Average days on market: 89
Price increase: 3%
Other than the fact that homes are sitting on the market longer than last year, it does not appear that prices have plunged to extents they have in other places in the nation.
According to Taylor Marr, Deputy Chief Economist at Redfin,
“The housing market has begun to recover after hitting a low point in the second week of November. We’re not out of the woods yet, but homebuyers are coming off the sidelines. The number of people contacting Redfin agents to start the homebuying process has improved 13%.”
If you are ready to start investing again – in rentals or your own home – and cannot qualify for a conventional loan or are looking for a fast close, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.
