What Effect Is Today’s News Having on Potential Buyer’s Mentalities?

existing home sales january numbersHow has the roller coaster ride in the stock market and the new tax changes effected home buyer psyche’s?  

We have noticed a “wait and see how things play out” attitude in buyer decision making in the first few months of the year.   Interest and Property Tax Deductibility has been decreased, and mortgage rates are trickling up, causing “pause” in many buyers plans.   This concern will slowly diffuse when buyers study the pros and cons of owning real estate.    Mortgage rates are still historically low and should remain that way.   It is very costly to build new homes these days in California, and that should keep inventory low, which should keep floor home prices.   Bottom line – if you have the ability to own versus rent, study the math on the two and match it up with historical appreciation over time. In my experience, it is still a wise decision to own versus rent, as long as you plan on owning the home for 5 years+ moving forward. It may seem like a big commitment. But it will pay off dividends for your future. I’m happy to answer any questions you have on this topic.

Ken Thayer, President of RFC