It is officially the 2nd half of 2016. What can we expect in the local real estate market from this point towards the end of the year?
Markets like certainty
I’m sure no one has forgotten that this is an election year. This election cycle doesn’t seem to be just like any other election. Regardless of your party affiliation or your political opinion, the unfavorable ratings of both candidates are historically high which means that we are faced with very polarizing choices. This translates into uncertainty about our future and creates pressure on the stock market and the real estate market. It is harder for all of us to make big decisions when the future is fuzzy.
While the surprising Brexit vote may bring prosperity to Great Britain in the long run, for now, it has resulted in short-term global uncertainty. Combined with the global refugee crisis, the drop in oil prices and the slow down in China’s growth, we have global uncertainty.
Changes in the market create opportunities. Global instability causes investors to move assets from riskier stocks to safer investments such as mortgage bonds. This movement of assets will force interest rates to decline creating refinancing opportunities for homeowners that may have feared that they missed the boat on these lower mortgage interest rates. It also helps increase the
purchasing power of buyers currently house shopping.
Making a plan
Typically, it is either a good time to sell or a good time to buy real estate. At this time, It is a great time to buy or sell real estate here in the South Bay. The high property values make this a great time to sell for a good price. With low interest rates, buyers have an increased purchasing power. Your success will depend upon your expectations, timing and choice of a professional team to support you. Contact us to today to discuss your options.