Are We Heading for Another Meltdown?

A market correction is coming, but when? How bad will it be? We have the answers for you.

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Could we be on the verge of another housing market meltdown?

Absolutely. I’ve been in real estate for 30 years and the market corrects itself every seven or eight years without fail. The last correction was in 2009. We’re due for another.

Basic economics says supply and demand is a big indicator of where the market’s going. If our supply is consistently exceeding our demand, that will absolutely cause a correction.

We’re due for a correction soon.

Another key indicator with each is interest rates. When they go up, prices go down. The same is true for what builders are doing. When they are offering incentives for brokers to come in and sell their inventory, we know that demand isn’t quite as high.

Finally, the unemployment rate. At the time of the last correction, it was around 9.5%. Right now, it’s down to 4.6% nationwide, which means there are more people out there who can afford homes.

If you have any other questions for me about the market or if you’re thinking about buying or selling in sunny San Diego, give me a call or send me an email today. I would be glad to help.

How we Stayed Committed to Supporting Our Client

“He went above and beyond in 2000. In 2000, one of his first home sales mine. I was one of his first clients and he actually sacrificed, maybe I shouldn’t say this, because he actually sacrificed some of his commission to ensure that I was happy. I had a termite infested pergola, like a backyard patio, and we didn’t catch it during the sale and inspection. And so I complained about it and he actually, to keep me happy as a client, he actually refunded me part of his commission. And at the time it was $500, I thought that was a lot of money at the time and I was one of his first clients. After that incident, I felt bad I took money out of him as one of his first clients, but he kept the customer happy and I alway refer people to him, I said there’s no other realtors I would go to beyond him. I tell them that he’s honest, fair, he’s smart and he has the experience in a difficult challenging industry and they’re getting one of the best when they hire him on.”

How We Made the Home Selling Process Pleasant

“I want to let you know that Joe Mendoza is such a wonderful agent. He is so pleasant and so knowledgeable. If you call him or text him or send him an email he will respond right away. He is such an asset to the real estate business.”

Ways You Can Buy and Sell at the Same Time

Many clients approach me asking how they can buy and sell a home simultaneously. There are a couple different options for completing this type of transaction.

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Want to buy a home? Search all homes for sale.

There are a lot of creative options if you want to buy and sell simultaneously.

One of the most common ways to buy and sell simultaneously is to sell first before your buy. When you sell first, you’ll have money in the bank, and then you can start looking for a new home.

Another way that people buy and sell simultaneously is when an offer comes in that’s acceptable to a seller, they make sure that the agent puts a clause in the contract that states that the purchase is conditional on the seller finding a new home. If that clause isn’t included in the contract, it could potentially leave the seller homeless. Adding that contingency safeguards the seller against that happening to them.

Another option that a seller can consider is called a “rent-back.” It gives a specified time period where a seller stays in a property after closing and rents the property back from the new owner while they look for another home to move into. It gives them more time to move out once they’ve found a place.

A rent-back gives more time for the seller to move out of their old home.

This last option is something that I haven’t seen in a long time but seems to be gaining more popularity. A couple of lenders have approached me recently about what’s called a “bridge loan.”

What that means is a seller will get all their ducks in a row and make sure they qualify for a new purchase, close on that new property, and start moving into their new home without the pressure of having to sell off their old one first. You can’t do this without qualifying for a bridge loan first, but it’s a really creative solution that I haven’t seen in a long time.

There are quite a few moving parts to these transactions that I can’t cover in a short video, so if you have any questions or are interested in getting that process started, please give me a call. I’d be happy to help you!

How We Helped Marle Buy and Sell a Home

“He’s been a high school friend so he's been our go-to person whether we’re selling or buying and we’ve been through several of those. He’s always been my husband and I’s go-to person. We don’t look anywhere else, he’s our realtor. He is always there the moment I text or call him. The response time is amazing. I don’t have to wait five minutes and he’s calling me back. He’s always above and beyond. There’s never a time I’m waiting for him. Joe is very reliable and he will do anything and everything for his clients.”