Southern California Real Estate - still strong?
With interest rates still at low levels, we are still seeing strong demand in the real estate market. It's not super-strong, mind you, as it has been in the past. Yet, multiple offers continue. Maybe it's not ten multiple offers, but three. And maybe the buyers don't offer tens of thousands of dollars over the asking price, but rather a few thousands.
We have been reading/hearing that interest rates are expected to rise through 2005.
Thinking of waiting for the market to turn? Well, think again. Consider this:
If you make $60,000 a year and plan to save 10%, you will save $6,000 in the next year.
But, if the home you want to buy (let's say it's $300,000 in today's market) appreciates 10% over the next year, at the end of that same year it will be worth $330,000. Can you save fast enough to buy at the end of the one year? You do the math.
And, let us know what you think!