Real Estate is a GREAT investment!

Buying a house can be terrifying. Selling a house can be equally as difficult. The entire process is stressful, but the end result is often worth every second of the struggle. Bob Schwab, a mortgage lender in our office, often shares great information, and points out this is because investing in real estate is a solid decision!

For the fifth year in a row, a Gallup poll showed that real estate is the best long-term investment out there. This year, 34 percent of Americans chose real estate as the best long-term investment, followed by stocks (26 percent). You can see the chart, stolen from Bob’s blog, below:

Just five years ago, gold was the most sought-after long-term investment with 34 percent of votes. Even back then, real estate was in second place, though the economy was recovering from the economic crash that preceded it. Overall, the real estate market is in good shape and people seem to agree that it’s a stable, long-term investing option. ¬†Rates are rising, so now may be a good time to buy check out this graph that shows how much buying power you lose as rates go up.
You can always give me a call to help you make that investment – it is, after all, my job!

Why rates went down after 4th Fed increase?

My friend Jay Vorhees at JVM Lending wrote another interesting end-of-year blog recently, regarding rates. Despite the Fed increasing rates for the 4th time in 2017, they are still down. Why is that, and how does it affect you?

In Jay’s blog, he notes that 30-year fixed rates have fallen 1/4 percent over the last year even though the Fed has done four increases. On that note, he asks why the Fed’s rate increases don’t push up mortgage rates?

In response, Jay gives two main reasons:

  1. Short-term rates don’t always affect long-term rates
  2. Many factors (besides the Fed) influence rates

Inflation, geopolitical strife, economic news and demand for credit and bank loans are the other main factors named by Jay. Most of those are very relevant in today’s societal and political climate. Basically, the Fed helps influence rates, but isn’t the sole influencer – if investors are pushed out of stocks or bonds into the other, due to war, a poor week on the stock market, etc., rates will change just as rapidly.

So, what does this mean for you?   Rates are going to continue to fluctuate. They are still low, so if you are considering buying, it might be a good time to get off the fence and make a move in 2018!

Walnut Creek experimenting with long-term street parking meters

These days, Walnut Creek is the hip place to be. But at its heart, our city is still the little town of 60,000 suburban residents, nestled in the shadow of Mt. Diablo. So, with the influx of visitors to Walnut Creek, one of the issues that have cropped up has been especially glaring: parking.

Or, rather, the lack thereof. With a rising demand in downtown parking options, Walnut Creek has started offering long-term street parking in “underutilized” areas outside the downtown core center.

We actually have some long-term meters just outside our offices here at Better Homes and Gardens, which are marked with purple poles. The new meters will cost $1 per hour, and do not contain the 2-hour limit imposed by regular meters downtown.

It will be interesting to see if this move pays off to unclog the downtown area during peak hours. I haven’t personally noticed a difference yet, but the idea is a bit retro. Another thought, how about outside the core downtown parking is free on Sundays? I can’t park in my office garage on Sundays, but can still get a ticket. You can see more about the long-term street parking below.

SaveSave