Wednesday, January 18, 2006

Is the Glass Half Empty or Half Full ?

Well, now we are hearing reports that homes in the San Francisco Bay Area have a 50% chance of going down in value. But wait, doesn't that mean that there is a 50% chance that they will go up in value? Better Odds than Vegas?

If we get to a point that we see only 4-6% per year value increases, is that bad? That would mean for every $100,000 of value could have an increase of $4000-$6000. If you had only put 10% down, that means you could have made $4000-$6000 on your $10,000 investment. Of course you do have to keep in mind that you financed the other 90% and you will have costs of financing to consider.

Perhaps we wont be seeing 20-25% increases in value per year, but that still does not mean that home ownership is not a good investment. May be we will just be getting back to the good old way of paying down your mortgage and receiving moderate value increases.

Friday, January 13, 2006

The fall of mortgage rates

Have you heard? 30 year mortgage rates fall for the 5th week in a row. Seems like economic data pointed out to less inflation risk which is keeping the rates lower. This decline probably will not last forever and we should expect an upward adjustment in the spring.

What I have seen in recent years is that in February ( especially after the superbowl) demand for homes pick up. So while things have slowed down in the winter and holiday periods, you can expect more real estate activity starting mid February. So with low interests and a good inventory is now a good time to buy?

Sunday, January 08, 2006

Welcome to my Real Estate Blog

I have been a realtor since 1988 and I would like to share my insights about the Bay Area real estate market. I also have a website - http://www.BillRinge.com and feel free to contact me with any questions.