Real Estate Sales Will Stay Steady And Maybe Increase Even If Rates Go Up Some…!

Mortgage rates increasing to the 4% range are still historically low, but…It’s not the point of this article.

Don’t you think by now that most of us active in the Real Estate Market in this region are aware that the economy here is on the upswing…?   If you are a Broker or an Agent, a Mortgage Loan officer, a home buyer or an investor active in the last couple of years this is old news to you.

Yes… I know interest rates helped to make it advantageous for many an investor,  especially if you had to finance a deal to get in.  I’m not going to panic over an increase in interest rates right now.

I’ve told just about everyone that I have ever worked for in a real estate deal, “the only reason prices haven’t gone up more is high unemployment”.

Here’s the latest headline from today’s Sacramento Bee Front Page.

Jobless rate plunges in Sacramento and California

Below here you’ll see some anecdotal evidence based on my experience to support my opinion.

English: The mall in Roseville, CA.

  • Traffic has gotten much more crowded on the local streets.   I see a lot of people at Restaurants, Entertainment venues and Shopping Malls.
  • Multiple Offers on a small supply of homes for sale – I know you have heard about that.
  • The Residential Rental Market is in great shape especially for well located and well maintained properties such as Folsom, El Dorado Hills, Roseville, Granite Bay, Fair Oaks, Gold River.   After only a week on the market, we recently leased a home in Empire Ranch for $2,850 with the new tenant paying the water, sewer and garbage.
  • Phone Book/Internet Searches – We are now getting calls from prospective tenants looking to move into a rental having difficulty finding a decent place.  They found us under Property Management listings hoping we had something they hadn’t seen elsewhere or maybe we had something “coming up”.
  • More “traditional” real estate transactions that are not Bank Owned/REO or Short Sales.
So… if you are thinking things are going to change anytime soon,  would you agree with me that it’s not going to be bad ?

Make It a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE     favinger@rwnetwork.com   916-203-1260
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