Ken Rosen, the chairman of the Fisher Center For Real Estate, at Berkeley’s Hass School of Business, talked recently about future real estate trends. Two points stood out: 1.) The old paradigm of low interest rates is not going to return in the foreseeable future. 2.) The doubling of debt service costs and cap rates has decreased values and now may be the best opportunity to buy real estate below replacement costs we’ve had since the early 1990’s.
Belmont House Prices
Belmont real estate trends show relatively flat house prices after the price drop at the beginning of 2022. The drop in values Dr. Rosen talked about weakly applies to Belmont houses. However, he also brought up replacement costs. The increased financing cost and increased cost of materials has brought the construction of new market rate apartments to a halt in San Jose. Replacement costs have discouraged builders from starting new housing projects. With neither interest rates nor building costs likely to decrease, waiting for change before trying to achieve your housing goals is not likely to be a good plan.
Real estate economist Ken Rosen on YouTube.