Southern California home prices—especially those in San Diego County—continue to rise. In fact, they have gone up for 62 straight months. In some places, median home values are as much as 74 percent higher than they were just five years ago!
The questions persist from current homeowners and also those who wish to be homeowners.
• Will prices keep going up?
• When will the proverbial “bubble” finally burst?
• Should I buy now or wait it out?
• Should I sell now and get maximum equity?
• Should I just refinance now and/or cash-out some of that equity?
Make the Right Decisions for You
In real estate, there is never certainty. Things can change at any time. The market could level out. Interest rates could go back up. Ultimately, you have to decide for yourself when it is the right time to act. Seek the help of real estate and mortgage experts to make sound decisions, because anything you do now will impact your financial future for years to come.
The Orange County Register recently published an article about Southern California home prices that are still on the rise in just about every local market. They spoke with economic analysts and real estate industry experts to figure out where we are at and where home prices are headed in the near future.
How Much Longer Will Prices Increase?
The consensus from the experts is that home prices in San Diego County and throughout Southern California are expected to keep going up for at least another two years. They don’t even consider the market to be in a “bubble” as of yet, though some homes are definitely overvalued. Some luxury homes ($2 million and up) may have come close to their peak prices. However, entry-level homes will likely continue to rise.
Is it a Good Time to Buy or Refinance?
The most important question pertains to people who are considering buying a home. Should you buy now? The experts say yes. Sure, prices are going up and there seems to be no sign of them slowing down. Conventional wisdom would dictate that you should buy while you can still afford it, especially considering things don’t appear to be getting cheaper any time soon. In addition, mortgage interest rates are still very favorable. Some experts predict mortgage rates will go up half a percentage point this year and perhaps another half point next year. You may be able to afford much more now than you will in another year or two.
Likewise, it is also a great time for current homeowners to refinance their mortgage loans. When you have low interest rates and a high home value, you will be able to secure the best possible refinancing terms. You may also be able to consider cashing out some of your equity, which you can use to make upgrades to your home (thus increasing the value even more) or to pay off car loans and credit card debt.
Get the Mortgage Help You Need
At Transparent Mortgage, we don’t see a slow-down in home prices any time soon. However, the great interest rates are helping first-time buyers make their moves, while current homeowners are taking advantage of excellent refinancing conditions.
To learn more about your home buying or refinance options or to get started with a pre-approval on a mortgage loan, call Transparent Mortgage today at (619) 929-0199.