Short Sale
S&P/Case-Shiller Home Index, average home prices increased 9.3% for the 20-City composites in the 12 months ending February 2013. According to this report, San Francisco market alone experienced a whopping 18.9% increase in the 1 year since Feb 2012.
But will this trend continue? If the answer is no, is it a good time to take some profits and invest the money in some other markets. Below are some reasons why the current Real Estate bubble might not be sustainable:
Inventory Shortage: Thanks to the manipulation by banks, there are more buyers than sellers in our Silicon Valley Real Estate market, so your home is already in demand due to lack of inventory.
Unemployment Drag: Despite a healthy rise in Real Estate prices, most companies are still not hiring due to the uncertainty about the economy. Small and Medium size companies which are responsible for the bulk of the employment growth of the early decade, are unable to secure ANY loans to grow their businesses.
Washington Dysfunction: News of the grid lock in Washington is not good news for the long term prospect of US economy with majority of spending on roads, airports and infrastructure such as High Speed Rail and High Speed internet tied up in the DC quagmire.
On-The-Job Training: Ironically, most employers while vocal about the lack of qualified job applicants, they refuse to spend any money for on-the-job training.
But it if you were tempted to consider a sale, you should start with a Home Valuation Request using the the link below to get you.
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