Mid Year Market Update| Mission Viejo Realtors

– Hey there. Are you curious about the projections in relation to the housing
market for the rest of the year? Hi, I’m Latrice Deluna, your Lake Forest submission
view home real estate expert. and here are some things to consider as we head into the coming months. First, home prices are
appreciating at normal rates. Over the past 10 years
we’ve seen home prices appreciating significantly
from one year to the next. We just keep seeing them go up, up, up. Now, according to the experts at the home price expectation survey FannieMae, Freddie Mac and the Mortgage Banker’s Association. They are anticipating
appreciation to continue to go up as we move into 2020. But at more normal levels which they are estimating
to be about 3.6%. Secondly, interest rates
are still very low. In the 1980 interest
rates were as high as 18%. The average interest rate over the last 30 years has been 8.27% and today we’re seeing them under 4% which is considerably lower than the average over the past 30 years. And lastly, we need to remember
that an impending recession does not mean a housing crisis or crash. I know everyone is a bit nervous about all to the talk of the recession and according to research , from the Duke Survey of American CFOs and the National Association
of the Distance Economics. They are anticipating a recession
with the next 18 months. But a recession will not
look like the housing crash that we experienced in 2008, in fact expert financial analyst Morgan Housel twitted, and I quote “An interesting thing is the
widespread assumption that the “next recession will be as bad as 2008. “Natural to think that way, “but, statistically, highly unlikely. “Could be over before
you realized it began.” oddly enough, in three out
of the last five recessions the United States faced from 1980 to 2008, home prices actually went up and for the record 2008
was the worst in regards to home prices declining. But we need to remind ourselves
why that was happening. Notes were being sold to
the investors as a paper that was actually thee paper, loans were being approved that had no business being approved Like stated, stated loans. There things are just
not happening anymore. Nower days in order to get a loan approved they basically pawn your first born child. So lets recap, the experts are anticipating normal appreciation heading into 2020, interest rates are low and
anticipated to remain low and if there is a recession, that does not mean a housing crisis but likely to mean normal
levels of appreciation. So what does this mean for you, it means get off of the
fence and make a move. Don’t forget the wonderful advantages you may receive from owning a home and being able to write-off the interest. I hope this this Mid-year
market update was helpful and feel free to reach out for
anything real estate related or just to see if there’s anything that I can do to serve you. I’m Latrice Deluna,
your real estate expert and as always I’m happy to help. (soft music)

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