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Nick Pham, Broker

Nick Pham, Broker

Top San Jose Realtor

San Jose Real Estate Market!

Everyone know summers are typically busy for real estate. With the increase in mortgage interest rates, how is the market? How do you think the market is going to do during the 2nd half of 2022? Are we seeing a crash like the “2008-Crash” on the horizon? Is it still the right buy or sell or hold?

I don’t have that crystal ball; however I can definitely share some market data that perhaps would help you with your #Real Estate decision. If you follow my blogs, you may remember a comparison I did showing the benefit of the low interest and even with the higher home price, vs the normal interest rates and lower home price. A lot of buyers were complaining that prices were too high, and that they will wait for price to drop. The only way that home sale price to stabilize for drop would be for interest rates to go back to normal…

Those that think that mortgage interest rates would remain below 3.000% forever, really did not understand how the market works. When the Fed lend money to the bank @ 0.00% to stimulate the economy during difficult time, it was temporary! It was only a matter of time before rates go back the the normal level. If you look at the historical interest rates graphs, after the 2008 crash, 30-yrs fixed interest rate have been hovering around 4.000% on average. Due to COVID, the 2020-2021 market was rather out of the norm. It was not in any way an indication/prediction, nor was it a new norm.

As Interest rates are readjusting to the typical level we saw prior to the COVID pandemic, we are actually heading back to the norm. The market to going through a correction period. The number of homes sold stay about the same, while the number of active is increasing. Dos this mean the DEMAND for Real Estate decrease? I don’t personally see that. I see good homes in the right neighborhood still selling fast!

Afterall, Real Estate is always about Location, Location, Location…

To sellers: when the marking is getting back to normal, you will need to work with an experienced Realtor that understands how to prepare your homes to sell for the highest price.

To Buyers: with increased inventory, your competition may be less. Sellers continue to sell! Do your homework, understand your qualifications, explore different loan options. Work with a Realtor with negotiation skills that understand the market. When you look at the long term, the benefits of homeownerships outweigh other factors.

Nick Pham | Real Estate and Mortgage Broker

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