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It's a great day at Jose Perez and Associates. My name is Jose Perez. I'm here to give you an update for the month of May. Three topics that we keep talking to people about. We keep getting asked, are we in a bubble? Stay tuned for some information on that. Number two why are people buying and selling, the market's crazy. I've got five reasons to share with you on that. Number three, what are the projections for interest rates and which direction they are headed. Stay tuned for more info.

Are We In A Bubble?

Welcome back. So, number one, we keep getting asked, are we in a bubble? So you're not alone. Look at this research done by Google "When is the housing market going to crash?" That phrase alone has spiked 2,450% in the past month. Now here's the thing, if you want more information on that, watch our video from last month, we really went in-depth. (April 2021 Real Estate Update) However, take a look at this one chart. Look at how many homes were built in the seventies and the eighties, nineties, two thousands, and 2010s. Guys in 2010, we only built 6.5 million homes. Now, if we just look at how many people are on this earth, we have more people yet we're building less houses. So clearly we have an inventory issue, and I just want to say the same thing that Lawrence Yun said. He said, "this is not a bubble, it is simply a lack of supply." Guys I wholeheartedly believe that, so watch who you hear. This is who I believe.

What Are Your Housing Needs?

Number two, if you look at why people are jumping into making moves in the tough market, like the one we're in, it's a double-edged sword. As a seller, man, take advantage of it you're in a really sweet position. You get lots offers, you get strong offers. When you go out to buy, now, the tables are turned and you've got to deal with it, but it can be done. Now five reasons why people are making moves is number one. Our home no longer meets our needs. That's a very common one. Number two, we can make a profit in the current market. Number three, we want a smaller house. We want less work. Number four, we want to live closer to friends and family. And number five, we want different features and amenities. These are all really common for us guys. If any of these apply to you or any other ones, feel free to give us a call. We'll give you guys a free one-on-one consultation to see if this is the right time for you.

What Are Interest Rate Projections?

Now guys. Number three, interest rates and projections. The people that we listen to is Fannie Mae, Freddie Mac, the national association realtors, and mortgage bankers association. They're predicting that rates are going to go into the mid-threes come the next couple of quarters. We really don't know, but these are their predictions. Now based on the fact that we're building so much equity and rates are on the rise, if you bought a house in the last couple of years, you were in a great position. You have, really good problems to have. Number one, should I refinance it? Number two, should I sell and upgrade or downgrade? If you bought your house and you have mortgage insurance, for sure you owe it to yourself to give me a call. In about five to 10 minutes I'll let you guys know if we can get rid of your mortgage insurance right away. Now, also, if you built up some equity, you've been there for a couple of years. You can use that transferred to another home and still lock into these low rates. So take advantage of the low rates.

If you have any questions, as you know, we cover from LA to Palm Springs and everything in between. Give us a call at (562) 646-6321.