3 Reasons Pleasant Hill Real Estate Could Top Out...

Could Pleasant Hill real estate be topping out? There are a few developments occurring on nationwide levels that point to an overall slow down for people thinking of selling their home at the best possible time.

Micro markets like Pleasant Hill don’t always go the exact same way national markets do. Here in Pleasant Hill we have one of the highest levels of desirability in the entire country, and the real estate market has also made headlines as being one of the hottest markets in the entire country.

Many say that it’s the time of year. Buyers are frustrated and everybody is beginning to shift their focus to the holidays.

However it’s highly possible this could be a perfect storm for real estate values to have a significant traction.

Here’s 3 reasons why the Pleasant Hill real estate market may be topping out

ONE: National Association of realtors report that homes pending for sale all over the country of slowed significantly nationwide.

Reports from the East Bay times confirms it’s even more serious in the bay area.

TWO: The feds policy to begin reducing its balance sheet basically means it’s going to aggressively start raising rates. Rates have already been raised several times this year and it’s expected but they will be a raised aggressively starting in December.

THREE: There’s a very real possibility due to the new tax proposal in Congress that the Mortgage Interest Tax Deduction along with other Real Estate write offs could be taken away from homeowners. This could cause some significant changes to home owners in high taxed states and could affect real estate values especially in California.

If the mortgage interest tax deduction is taken away on any level it will raise the overall costs of real estate ownership and could have an overnight impact on home values especially in wealthier areas.

One BIG reason it may NOT be topping out.

At the end of the day supply and demand are the biggest key indicators of an economic market... the only indicator I see that will hold this market up is the LACK OF INVENTORY on the Pleasant Hill market.

In lieu of other heavily weighing factors until a catalyst occurs making people WANT to sell more homes, like the foreclosure and short sale melt down of 2008 this market could hold strong.

Here’s the bottom line

If you’ve been tossing around the idea of selling your Pleasant Hill home, it would be a good idea to contact your agent sooner than later and get a market analysis from them.

If you have any need to leverage equity in your home lower your interest rate or take cash out you may miss the boat on refinancingonce the Fed starts to raise rates.

If you’re a potential buyer it’s highly likely all this will be a wash if real estate prices come down and rates go up they can possibly cancel each other out depending on the severity of both corrections.

We will have to wait and see I guess.