5 Reasons to be Optimistic About Home Ownership
5 Reasons to be Optimistic About Home OwnershipJune 27th, 2019 by Karen
Many people are waiting for the housing market to come down before making their next move. However, there’s still plenty of reasons to be optimistic about home ownership. Here are the top 5 reasons:
#1 Strong Economy
Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the first quarter of 2019, according to the “second” estimate released by the Bureau of Economic Analysis.
“The economy is doing well. It has steady growth, low unemployment, and little inflation. That’s called the Goldilocks economy because it’s neither too hot nor too cold.” – The Balance
#2 Unemployment Rate is Low
California’s Unemployment Rate is 4.2% based on the Bureau of Labor Statistics.
#3 Wages are Increasing
The Average Hourly Earnings has increased 3.1% over prior year according to the Bureau of Labor Statistics.
#4 Mortgage Rates still at historical low
“Modestly weaker consumer spending and manufacturing data…caused interest rates to decline… While signals from the financial markets are flashing caution signs, the real economy remains on solid ground with steady job growth and five-decade low unemployment rates, which will drive up home sales this summer.” – Freddie Mac
#5 Inventory is increasing
Inventory in San Diego has risen to 2.6 which is a 36.8% increase over prior year. A balanced market is approximately 6 months of inventory.
People believe in home ownership as something that’s very, very, very important. The good news is we’re in a year right now, that there’s still plenty of reasons to be optimistic about homeownership. We have a strong economy. The unemployment rate is so low. Wages are increasing. Mortgage rates are still at historic lows, and inventory is increasing so, there’s more of a choice.
If you are thinking to buy or sell, contact me to discuss your particular situation!