FINANCIAL MICROCLIMATES

January 24, 2019
As a Realtor, part of my job is to watch the market. I’ve been watching it, since 2004. Not surprisingly, my clients always ask me, “what do you think the market will do?” The government shutdown has added another layer of uncertainty on an already questioning atmosphere, wondering how Brexit, the tariffs, and the Mueller investigation will impact our economy. The truth is, no one knows.
 
Most economic forecasts will tell you that 2019, “should be good, not great,” and that we’ll slow down, or have flattened prices, while at the same time, they assure you that there’s no reason to panic. (Who’s panicking?)
 
If you’re like most people, you read books and blogs, surf the internet, watch the news and cruise real estate sites and are nervously waiting for a reduction in housing prices. Most experienced agents, would disagree that a *major* price adjustment is coming.
 
I knew clients once who waited eight years to buy, always hoping the prices would drop. They waited from about 2006 to 2014; big mistake. They paid about $800,000 more, for a lesser neighborhood, and lost eight years of equity. True story. The best time to buy or sell, is when you’re ready!
 
The thing that sets the Bay Area apart, and the reason why you can’t apply national news reports to our housing market, is that we are a Financial Microclimate. The Bay Area is a world, unto itself. There are Goliath Companies in our midst that employ hundreds of thousands of people and they are solid companies: Google, Apple, Twitter, Facebook, UCSF, Genentech, Oracle and more. These employees are eating in our restaurants, shopping in our retail stores and renting apartments for high prices, or buying condos and homes. There isn’t just one industry here—there are several. These employees are making far more than the national average and coupled with a housing shortage, well, you’ve seen the news.
 
For people considering a property sale or purchase, it’s always a good time, in the Bay Area. I might get accused of sounding like a realtor when I say that, but it’s true. Because even if the prices do go down, and let’s just say it does go down, the wave up will be higher than it is now. The equity you lose waiting, is thousands, if not tens of thousand, more than any savings you’re trying find.
 
If you have a home and you’re thinking of selling, there are people out there desperate to buy. Right now you’ll get a good price and you may be able to negotiate a later move out, so that you are able to find a place to go. If you want to buy, do it now, interest rates can greatly effect your payments, even if they go up a quarter or half a percent.
 
Within the Bay Area these microclimates are growing and they are changing prices in areas formerly unknown, or unnoticed, by eager homebuyers. Ferries, BART & the SMART train are expanding and unifying outside areas so people have more options to live and work wherever they chose. No matter what your price range OR how much you have to invest, there is a good market for you.
 
If you’re not sure about your credit score, what your mortgage payment would be, or how to start the process, give me a call or send me an email at [email protected]

Sandra Luna

415-279-8610   [email protected]   Lic. #01747658

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