Rent is at an all time high
In 2012 US Census data reported that rent in Southern California had reached an all time high in 12 years, and yet, since then it has not slowed down. In fact, the last 5 years rent in Southern California has increased by over 5% in most areas. With the economic growth and employment rates up, the rental market does not show signs of slowing down. When an average 2-bedroom apartment is $1800 in Orange County, an equivalent property of the same size would have an approximate mortgage payment of $1600. It is always advisable to put money into your own pocket and purchase to build equity, but when a mortgage payment is lower than what you would pay in rent, it becomes a no-brainer that it may be time to invest in a property for yourself.
Rates are still low, but are steadily increasing
It was not long ago where interest rates were in the high 6-7% ranges and yet the average homeownership rate is at an all-time low right now even when rates are currently in the low 4%.
Affordability is high as rates are still low, however, the Fed does plan on increasing rates steadily through 2017 and 2018. It is a great time to lock into a low rate and low payment while affordability is still attainable. The higher the rates go the less affordable homes will be for the average prospective buyer.
Prices are still on the rise
Everything you hear anytime the market is being discussed is “low inventory”. That is the mantra for the Southern California real estate market. The inventory is historically low and therefore home prices are still continuing to rise. This may change and shift as affordability changes however, industry experts indicate that it is very unlikely for prices to go down any time soon. It may be just the right time to buy your dream home before the next peak.
Start today by calling one of our agents. (800) 257-6021 to help you find your next dream home.