McKae Properties Real Estate Market Commentary

Interest rates are going up and will go up further in the future.  The stock market most of Silicon Valley buys in taking a BEATING.  There are no vestal virgins in the temple the Visigoth's have taken them home. So where do you put your investment savings.  One area that has always held up is rental or income producing real estate.  From single family homes, multi-family and apartment buildings.  They offer cash flow and tax shelter with appreciation from the growth in income to the amortization of mortgages. I have a great You Tube visual for you to watch. If you've ever thought about buying an investment property, here's a  solid video from the "Meet Kevin" youtube channel .  Kevin definitely gives some solid "insider" tips in this video.  If you'd like to continue the conversation and start the process of finding a great local deal, feel free to reply to this email or text me @ 650-743-7249 anytime.  Gary McKae, gary.mckae@exprealty.com

  Mortgage rates jumped again this week, giving no relief to the price-weary homebuyers still in the market. The rate on the 30-year fixed mortgage increased to 5.66% from 5.55% the week prior, according to   Freddie Mac , and is up more than a half-point from two weeks ago. While lower than the 5.81% registered in June, the rate remains over 2 percentage points higher than the start of the year. Higher borrowing costs have left cash-strapped homebuyers at a divide. Some folks have opted to put off their purchase plans and wait for better market conditions, while those who remain are taking advantage of the dip in competition to strike a bargain with sellers. “The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower demand, likely resulting in continued price growth deceleration,” Sam Khater, Freddie Mac’s chief economist said in a news release Ronda Lee Wed, August 31, 2022, 7:31 AM · 3 mi