California Real Estate Market Check-Up!

According to the chief real estate economist at California Association of Realtors, Leslie Appleton-Young, “The Great Recession” is officially over, due to so many factors in California economically-

1. We added back all 1.3 million jobs, plus an additional 1.3 million

2. Unemployment has dipped below 5 percent for the first time in more than a decade

3. The stock market is near all-time highs across most major indices

4. Interest rates remain near historic lows for mortgages

5. The state government is currently running a budget surplus, even if it rests on a very narrow base

6. California remains a very popular destination for the rest of the world, with nearly 25 million international travelers this year

7. Home prices overall continue to rise, not fall

The factors above show that stability is back in the real estate market, including in San Clemente. Additionally, the banks today are very strict for all loans, and have been like that for almost 10 years. Clients we’re helping today have a lot of equity now saved up, and continue to be paying down loan amounts and adding to their equity position. The following are examples worth
mentioning. If you bought a house in the year 2000, and have been paying that down for almost 20 years, you should be in a situation where you have at least 75 percent or more, equity position. You can refinance to lower your payment significantly. We also have a lot of clients who bought in 2009-2012 era and even with a low-down payment of 10 percent or 20 percent, those
clients are in a 50 percent or more, equity position since prices have gone up about 45 percent since the bottom of the market. Most people are using this equity to get a bigger home or one with a better location. We also have a lot of people downsizing and paying cash for the next property to be mortgage free. These are all reasons why the local real estate market will continue to be stable for the foreseeable future.