I know you've heard that saying, "All Real Estate is Local" many times and in San Mateo County and especially in Burlingame and Hillsborough it's really so. Lately, all media screams out at us on a daily basis how bad investing in real estate is and that everyone is being hurt by the sub-prime mess. Guess what? That just isn't the case. Sure there are some areas of San Mateo County that truly are in trouble because of the sub-prime mess but certainly not Burlingame or Hillsborough. The prices haven't dipped a bit all year. <!--{PS..0}-->
Let me give you a few facts about real estate that the media doesn't want you to know about.
- Over 30% of all homeowners are mortgage free. They have paid it off.
- Only 5% of all loans are in trouble nation wide. That means 95% of all mortgages are current.
- The United States National Debt is $9.9 Trillion.
- The sub-prime melt down is only $75 Billion, which isn't peanuts, but is only .0075% of the National Debt.
- 2007 looks to be the fourth best year in history for the housing industry with about 5.5 million homes changing hands.
- In 2005, 7.1 millions homes changed hands and 40% were non-owner occupied. These were either second homes or speculators buying and selling.
- RealtyTrac reports that only 5 in 1000 households is in trouble with their mortgage today.
Have you heard any of this from the mainstream media? I sure haven't but these are the numbers from the National Association of Realtors and the Mortgage Bankers Association and both are in the midst of the real estate "crisis". What you need to be aware of is that our immediate area, Millbrae south to San Carlos and then even further south into Santa Clara County down to Cupertino has no bubble. What we have is a booming economy, too few homes for people to buy, a pent up need for home ownership and the opportunity to put ones roots down into a community and stay a while.
There are loans out there but in order to buy a home you must have at least a 675 FICO score and money in the bank. There are great buys in the East Bay, Daly City, and other areas in the Bay Area if you have money. Its a great time to buy investment property and use it for rentals and build your real estate wealth. Historically in the Bay Area, what has gone down has always moved back up and up again.
Will we see those amazing 20%, 30%, 50% appreciations we saw earlier this decade? No, No, No. We are back to a normal appreciation of 3%-%5 a year. That's not bad considering your home is your castle and if you plan on staying in it for at least 5 years you'll do just fine, thank you.
We're here to answer any questions you might have about the local real estate market. It's a good time to buy a home to live in on the Peninsula, or for investment in other parts of our area. Pop me an email with questions of the best places to look for a good ROI on this and I'm here to help you.
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