REAL ESTATE MARKET (FREMONT, MISSION SAN JOSE)

Financial Market:

The Fed Funds Rate cut affects Home Equity Lines of Credit, credit cards, business loans, car loans and the like BUT THAT DOES NOT HAVE A DIRECT CORRELATION TO HOME LOAN RATES!

Home loan interest rates are more directly tied to the bond market. The fear of inflation has increased our home loan interest rates. Do not put off purchasing because of interest rates. Sellers are helping buyers. The sellers are buying down the buyer’s interest rates. Buyers can take out a 5 year fixed rate loan at a reasonable interest rate after the sellers buy down the interest rates.

WHY IS THIS A GREAT TIME TO PURCHASE A HOME IN THE MISSION AREA?

Sellers are willing to negotiate their asking price - generally
There is little competition and few multiple offers
There is no bidding up prices
Sellers have priced their home reasonably
September through January are SLOW sales months
Prices are not increasing
Schools in the area have the highest API scores and the highest percentage of children attending a college

YOU SAY: HOME PRICES COULD GO DOWN?

1. It is difficult to buy stocks as the lowest price and difficult to sell when the stocks are high – but if you plan on staying in the market you end up ahead. The same goes for buying and purchasing homes.

2. Remember 911 and prices in the Mission Area dropped $100,000 and less than 6 months later the prices were back up $100,000.