No One Knows for sure… But Here’s some Stats You Should Look At…!
I remember the Real Estate Market back in 1989 and of course the big crash in 2007-2008.
If you want my opinion…? I don’t think we’re there yet. If you look at the links below, you’ll see what I’m talking about.
In 1989 I moved here from the Bay Area and the Index then was I believe about 19% of the folks living there at the time could afford to buy the median priced home with 20% down. Here in the Sacramento Real Estate market it was about 49% back then.
When we got to the top of the market in say, late 2004, the index was way down through out the state. I’ll let the indexes below give you the data. Take a peek at them and then decide for yourself if we’re in a bubble. I think you’ll be surprised at what you’ll see.
- Start Here and take a Look at the History of the Affordability Index
- Now click Here for the Methodology to Calculate the Traditional Index
- Here’s the most recent index up to Q4 of 2015
Let’s talk about FIRST TIME BUYERS – it’s even better for them.
- Click Here for the Methodology to Calculate the 1st Time Buyer Index
- Click Here for the 1st Time Buyer’s Affordability Index
Bottom line is while interest rates are low and prices are going up some, there’s plenty of demand for Residential Real Estate. There are plenty of Buyers out there but not much inventory to choose from.
If you’re thinking of buying and you’re worried we might be in a bubble, historically speaking we have a ways to go.
If you’re thinking of Selling you’ve probably heard from more than one source how low the inventory is so call me to get the latest valuation of your property. We specialize in Single Family Homes, Duplexes, Four-Plexes and Small Apartment complexes. If you’re in Investor, we also do Property Management. So give us a chance at your business today.
In the Mean Time…?
Make it a Great Day…!
Ed Favinger, Broker CRS, GRI, SFR, CDPE favinger@rwnetwork.com 916-203-1260
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