Why buy now when the real estate market is slowing down?
Home sales in Silicon Valley vary from month to month for a number of different reasons, and the most significant reason being homebuyer’s demand. The homebuyer’s demand is influenced by many factors including changes in home prices, mortgage interest rates, the presence of investors in the market, quantity and quality of jobs held by homebuyers and homebuyer saving rate.
According to a new report released by the California Association of Realtors, just one month after hitting a four-year high in home sales, the volume took a step towards the back in the month of July.
The sale of Luxury-home in Silicon Valley had been mainly supported up by technical executives flush with cash after initial public offerings, and foreign buyers. But now, in the advent of turbulent times for global financial markets, luxury-home sales across the country have gone down.
However, there are many key reasons at play behind the current Bay Area real estate market that goes into thinking when home buyers decide to buy.
The first factor is there is still plenty of demand for homes costing under $2.5 million. This gives an affordable opportunity to software engineers and technical executives to own their dream home in the Valley and surrounding areas. Secondly, the mortgage rates fall to near record low in the last 40 years. The rates are predicted to rise. This will further accelerate borrowing costs and month mortgage payments.
There are many more factors. The tax code permits homeowners to take away the mortgage interest from their tax obligations. The statistics of 30+ years of Bay Area real estate cycles show only one result despite a couple of small deviations. It shows the real estate market going up. Also as the population grows, there will be a demand for more homes as people start families and get employed. Inflation prevailing in the market is also a crucial factor.
According to Cynthia Trinh who is a professional realtor in Bay Area, home buyers will have more choices as more homes will hit the market. She has also highlighted rent prices are expected to grow. So buying a home will be a cheaper option than renting.
Act now if you are planning to buy a home as it is best time to invest in real estate. Take help of Cynthia Trinh. She is one of the leading real estate agents in Bay Area offering professional services to those who are looking for best home buying deals.