Search
  • Yvonne Yang

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recess


There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.

This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.

The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.

Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100:


Compared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.

But isn’t the economy still in a recession?

Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:

“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”

That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:

“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”
3 views0 comments
WHAT'S UP?
LAST EVENT
CONTACT

Coming Soon

33009 Wawasee St, Fremont, CA 94555
974 Blair Ave, Sunnyvale, CA 94087
221 Outlook Heights Ct, Pacifica, CA 94044

34951 Belvedere Ter, Fremont, CA 94555

Currently Pending
943 Baines St, East Palo Alto, CA 94303
5387 Quebec Cmn, Fremont, CA 94555
1535 Treviso Ave, San Jose, CA 95118
3652 Sorci Dr, San Jose, CA 95124

1821 Mandel Ct, San Jose, CA 95131

40284 Cottage Rose Ter, Fremont, CA 94538

Currently Sold

6129 Genoa Ter #49 Fremont, CA 94555

167 S San Antonio Rd, Los Altos, CA 94022

Tel: (408) 674-4418
Calbre: 01371905

Email: yvonne@yvonneyanghomes.com

Currently Sold

5992 Treviso Ter #137,
Fremont, CA 94555

  • contact-me-icon-63
  • img_179745
  • w-facebook
  • White Instagram Icon
  • White LinkedIn Icon
  • White YouTube Icon

© Copyright 2021 Yvonne Yang, All Rights Reserved