It has happened! The Federal Reserve raised the key interest rate on Wednesday from 0-0.25% to 0.25-0.5%.
Don’t go running for the hills, this is a good thing for the economy as a whole. We have been expecting this rate to increase for quite some time, we have even talked about it through our blogs and even this monthly email, but it has finally came to fruition. They made this decision based on many different factors, however a large portion of that decision must have been because the residential real estate market is experiencing its best year since the crash. We have a healthy demand for houses and our unemployment rate has continued to stay at 5% and we have no signs to show us that this will change anytime soon. The FED has stated that they will have “gradual increases” in rates this year. What does this mean for the real estate market? In all honesty I see this putting a nice boost in our already strong real estate market in the immediate future, I say that because I believe buyers will rush to the market in order to lock in a low interest rate. However the long term effect is less predictable.
Here is what we have seen up to this point. Pending home sales increased 11.7%, days on market decreased 13%, and the amount of homes for sale decreased a whole 21.2%. These are all strong indicators that the market is doing extremely well and a small increase in interest rates will not slow it down. Good things ahead for the San Diego Real Estate market!
Time to get off the fence! Rates are still extremely low and will remain there for some time, however if the FED were to increase rates just one more quarter of a percent, you could be looking at hundreds of dollars more each month on a mortgage. Call me today to get started!
First and foremost, if you do not plan on selling anytime soon and your interest rate is not below 4%, you need to consider refinancing before rates go up. If you are thinking about selling you may want to start preparing your home now, that way you can have your home on the market come Jan 1st. I say that because we always see a spike in inventory in February, so why not beat those sellers to the starting line and be ready for all those new year buyers! Call me today so we can come up with the best strategy.
Author:Joseph Arendsen Phone: 760-672-0174 Dated: December 29th 2015 Views: 782 About Joseph: Having been raised in North County San Diego, Joseph has a great wealth of experience and knowledge ...
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Having been raised in San Diego, Joseph has a great wealth of knowledge of each community San Diego has to offer. Combined with being extremely hard working, having a great attention to detail, and having the ability to listen Josephs clients receive an elite level of service.
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"I have worked with Joseph for nearly four years, both with him doing property management as well as sales of property. I have always felt I could rely on his judgement and abilities. I've used a few property managers over the years and far and away Joseph has been the best one that I've worked with. He has done an outstanding job in dealing with tenants to both meet their expectations and not allow them to become unreasonable.
Recently, he helped me in the sale of a condo that included getting renovation work done before the sale. Joseph listened to what I wanted to have done and provided useful advice and coordination of the tasks. We had a successful sale that came in at full asking price and within only a few days of listing. I could not have possibly done that without Joseph's efforts. He went beyond what most agents and managers would be willing to do.
He continues to manage some of my other properties and I will be using him again for future sales. He is someone I can count on and that is hard to find."