The potential effects of a recession on the real estate market would create the possibility for a Lower Interest Rate environment.
Real estate market consensus is that there will be a price deceleration ie. price will increase in a slower, normal pace than the spikes we saw for the last 2 years.
Let’s say we are being conservative, and see home price closer to 5% appreciation through 07/2023:
* It is still extremely meaningful for wealth creation.
* If you purchased a $1,000,000 home, and put down 15%, that means you would gain:
a) $50,000 in appreciation over the next year
b) Earn a 33.33% return on your investment due to leverage
c) …AND… get to live in your dream home
Real estate is always a good hedge for inflation. Besides, chances are it will appreciate in the long run. Therefore, if you are planning to buy, don’t try to time the market.
Pick a good location like Palos Verdes and partner with a local expert like Stephen Haw at (310) 503-9886 to discuss how you can excel in this market. DRE#00808646. Keller Williams Palos Verdes Realty
Call 310.503.9886 or email skh8828(at)gmail(dotted)com for professional guidance from The Stephen Haw Group, your local experts with international connections.