At the start of 2016, many real estate industry publications were stating that the price of housing was going to be stagnate for most of this year. Well, they don’t know the greater Contra Costa real estate market that well! The truth is, I’ve been seeing homes go way over asking price for the last couple of years and up until recently. Maybe there are spots in the country where the real estate market as leveled out and home prices today are not that much different than home prices of 16 months ago, but for the Walnut Creek, CA and surrounding areas- we are still going strong.
According to a December 2015 post on Realtor.com, “ News Corp. NWS, +4.00% ) predicts that 30-year mortgage rates will increase to 4.65% on average by the end of 2016, compared with current 30-year rates as compiled by Bankrate.com of 3.88%. At a 4.65% interest rate with a 30-year term and a 20% down payment of $36,600, a home at the current (November 2015) median value of $183,000 would have an estimated mortgage payment of $945, including property taxes and insurance. That compares to a current mortgage payment of about $879 a month including taxes and insurance at 3.88%”
Well, this hasn’t been the case and affordability hasn’t been a huge market influence this year. Another untruth is that more millennials were looking to buy this year. At Benson Property Management, where I have a company that rents properties for investors and property owners, we are seeing an uptick in millennials looking to rent- not buy- this year. Another prediction gone bad.
Home buying and home renting are still very hot in the market today, and both are causing the price of demand to go up- not become stagnate. If you’re wondering what the rent or the home purchase price is in your area- contact me. I am happy to sit down for some local coffee and discuss price point, what homes and rentals are really getting, and what new mortgage products are starting to trend towards the end of 2016!