It’s a New Year Miracle – my wife Jennifer and I actually made it past midnight this year! We usually call it a night when the New York ball lands because we are total wimps. But not this year …WE REPRESENTED …even our kids stayed up until 1 AM in a big overnight fest with friends in Moorpark, CA. Of course, my kids were a total disaster the next day – but hey, they started the New Year with attitude. Now a little update for Temecula and Murrieta CA Real Estate with some macro financial commentary.
Personally, I think having an aggressive attitude is going to be much needed this year. 2016 is going to be one of the most interesting years we have had in a long time. To start, the Fed finally moved interest rates in December for the first time since 2006. I think they will raise them one more time after summer but many pundits suggest 3 or more times. Second, the year started with stock markets reeling and the 2015 S&P Index having its lowest return since 2008. Finally, this is a MAJOR election year so it’s going to be intense and depending on which party wins, more changes. In the meantime we get to hear all the promises and receive tons of mailers…ugh.
That doesn’t mean a doom and gloom year at all, just simply a year of change and change can be fantastic. Using a helicopter view and not getting caught up in the day to day political stuff, a few things become clear – 1) Interest rates are going up. They may hang for a while and in fact, with the stock market tanking, they are very low right now. But it is a matter of time now that the Fed has made its first move. 2) Murrieta CA real estate and Temecula real estate will gravitate towards traditional 3-5% price growth. Due to low interest rates I lean more towards 5%. 3) 2017, post election will bring further change – more conservative fiscal management, higher inflation, and a stronger dollar.
So being aggressive this year could be very smart. If you are considering buying a Murrieta home, moving up into a larger home, or downsizing, I wouldn’t sit too long. Locking in low interest rates on any variable loans, equity lines, or on a new home you plan to stay in for 5 years or more will have you looking back a decade from now at 2016 as one of your fiscally smartest years ever. People with fixed interest rates at 4.25% or lower will be so much financially stronger in the near and long term future – guaranteed. Murrieta CA Real Estate should be moving up this year!
Also, with the dollar so strong right now, it is a great time to get in some international travel. So get aggressive this year and if you need anything at all or have questions, please do not hesitate to call me!
Stefan aka Mr. Murrieta