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Well, 2018 is one third over. Time does fly, doesn’t it?

Published May 3, 2018

It’s time to review some recent real estate predictions, their accuracies, and their effect on your real estate goals:

  1. Interest rates-The experts have been predicting interest rate increases of up 5% interest, or higher. Thus far this year, we have at best a very minimal increase of 0.25% or less. We just received word that the “Fed” will not raise rates again this week. Not so accurate but great if you are planning to refinance or buy a home as your residence or investment. I think we are in a short term period of low rates and they will rise shortly. Buy or refinance as soon as you can
  2. Prices-Prices are up in Orange County over 5% since last year, pretty much as predicted. We’ll probably see a slight increase over the next few months, but not much. This is definitely the best time of the year to sell, and continues to be a great time to buy
  3. Inventory-inventory is still tight. If you’re a buyer, this is the time to work with an experienced respected Realtor with excellent connections and credibility (anyone we know). The same is true for sellers. Sometimes the best markets can be the hardest without professional support.
  4. Rents-Rents continue to soar, as predicted. It makes more sense than ever to be a homeowner.
  5. Taxes-This is the new change that we didn’t anticipate. I personally thought the reduction in maximum mortgage qualifying for mortgage interest deduction )$750,000 v $1,000,000) and the reduction (to $10,000 maximum) in total tax deductions (including property tax) would negatively affect real estate sales. However, when we look at rents, interest rates, and the newly doubled limit on standard deduction to $24,000 for families has changed the way we evaluate real estate investments, but not the value of buying rather than renting.

Bottom line, this is a great time to be a buyer, but also a great time to be a seller in Orange County. This is a very unique period for real estate.

As always, we are available to assist you in making the right real estate investments for you and your family. Please feel free to call, 949-500-6365, email, Frank@FrankDiLauro.com, or through our website, www.FrankDiLauro.com