Description: The article is about sdccu login. As a part of the ongoing Managing Your Money seminars presented by SDCCU,the author analyzes the Real Estate in America. He analyzes the nowadays house situation and the real estate situation years before.
This has been an amazing run in real estate,it’s so easy to understand,it’s so simple to understand,it’s so obvious,it’s going to continue. We had terrible market in the early 2000s,it was terrible.
There are many differences now between the ways the real estate market was before. This is a market driven totally by the lack of inventory. You can go to the website for the building industry association, they will tell you how far behind we are in home construction to meet the demand. That’s not single-family detached home,we’re talking about any type of housing such as condos and apartments,whatever the case may be,the shortage is loud.
You can hear it,you can feel it. It’s not going to change anytime soon. It is so hard to build in San Diego County before you put your first shovel in the ground to build a home,it costs you $80,000 in fees. You’re in the hole of 80,000 bucks before you pound your first nail.
That’s why you don’t see much construction activity going on. I would assume that most of you in your neighborhood are lining in multi-family. We’re still so far behind in demand. We have a vacancy rate in San Diego County on apartments for about three or four percent,it’s ridiculous.
It’s almost harder to rent an apartment than to get a loan and buy a house. Anybody who tries to get an apartment may need to offer up your first child. It’s ridiculous. You know how tight it is. They inspect you in your earnings and your personal report,it’s not going to change,we’re not going to see all of a sudden a whole bunch of housing.
The only thing that dramatically missing from this current housing market is the move-up buyer. Back in the early 2000s,people were selling a house,they would own a house for a couple of years, they could make a hundred thousand bucks and go out and buy another house and then two years later,they could sell that one and go out and buy another house.
We’re not seeing that. People have said that there was no way to sell their house anymore during that downturn and during the Great Recession. They might make it more livable because they’re going to be here for a while,so they went out and did a lot of home improvements,now they’ve got their dream home.
They’re not going to sell it,they like where they are,they know who their neighbors are,they’re going to stay there. So we’re not getting that move up seller who’s buying a bigger and better house. If anything is happening,the next thing is the move down .
We had big house for four while we were raising our two kids,they went off to college,our son went in the Navy. If we don’t sell this house,they will move back in.
We did that thing,we downsized that,we did what we were supposed to do,we moved into another house,we bought a condo. The first night we were in bed,I said to my wife that we have made one of the biggest mistakes that we’ve ever made in our life. It wasn’t hard for us to do the right thing. Fortunately,it was at the time when housing prices were exploding, we made enough money,we lucked out on that. We bought a nice two-bedroom house and watched it go down in price for four or five years.
Everything else comes back. I don’t see what may cause this thing to go bad. It slows down. We lived in this little subset community in Vista of shadow Ridge,a house goes on the market,we never had that before. When we have a house going on the market,we don’t know what to do.
They don’t even get a sign to say that the house has been sold. One person is going to auction,he thinks that he can make that money on the thing. I think the longest period in the last two years was the time to sell a house.
Anything could happen. There are plenty of people trying to buy it. If you look in that back window of $ 400,000 to $600,000,you will see that interest rates have stayed so low,they’ve gone up a little bit. It’s so funny to me to watch the idiots on CNBC and Fox Business,you should not watch that. I have to do that, but you don’t have to.
When this housing market interest rates hit 6%,they are going to crash. How many people in this room are watching your first house and having a double-digit mortgage? I see enough people that should be able to respond to this. You were thrilled to get it,weren’t you?
They’re talking about the 6%,it is killing the market. When we bought our house,we needed a house,it was the right thing to do, you can see many people show their hands, we weren’t alone. 6% is not going to kill this market. When you see the monthly reports come out and you see the average price for a home in San Diego County,it’s five hundred and eighty thousand dollars.
That’s the average price for a home sold in the last month,it doesn’t mean that if you take all the houses, they come up with the average. It says the average price is five hundred and eighty thousand dollars, it means that half of them sold more than that and half of them sold less than that.