During these uncertain times in California’s real estate market, Amin Pormer seems to know the answer to all questions regarding the future of the real estate market. The real estate’s rising star, who is also known as PrinceofRealEstate in social media, is a highly activebusinessman, and in 2021 he has been able to submit the record an impressive amount transaction deals in Southern California.The young up and coming broker, who also has his own flipping and funding companies, tells us about the future of home prices in 2022.
The home prices in California surged by almost 20% in 2021 due to the low interest rates of the loans. However, Amin believes that the interest rates won’t stay as low in 2022. We asked Amin what his prediction was about the loan rates in 2022, he responded,” If you have a basic economic knowledge, you can already feel the impact of inflation on your daily expenses. From grocery items to cars and real estate, all are being impacted by the pandemic, money prints, and shortage of supply. The inflation that has happened recently has been more than any rate in the past 40 years. So the government needs to do something in order to fight the inflation.”
The young entrepreneur seems to have an in depth knowledge of the real estate market that makes sense of the events that are shaping our lives. Despite what the majority of the industrybelieves regarding the burst in the housing market bubble, Amin believes that we may only face a temporary cool down in 2022, but in the long runthe home prices will go up again, possibly in the second half of 2022.
We asked Amin what kind of action he thinks that the government and financial institutions will take in 2022 regarding the rates, he responded “Well, since money is losing its value, we need to do something to strengthen the value of dollar. This can be done by increasing the rates. My friends and connections at Federal Reserve have told me that the interest rates in 2022 will go up by 280% percent, which is almost equal to 0.75 points. Once the rates go up and money becomes strong, all other commodities against money will drop. Financial institutions and retail investors will pull their money out of real estate, stocks, and crypto. Therefore, the value of the commodities will drop.”
We also asked Amin how long he thinks this cool down will last, he responded “It’ll be very temporary before the real estate prices surge back up again. There is a bigger factor that’s impacting real estate prices than just the interest rate: that factor is the material and supply shortage. We are facing a shortage of housing in Southern California. Furthermore, the homes that were built in 2020 and 2021, and coming to the market in 2022, have been built with materials at a higher cost than before. Therefore, the builders will have to put their homes up for sale at a higher price. And since there is more demand than supply, the buyer will have to pay more, even though the home prices have surged.”
Check him out on :
https://www.instagram.com/princeofrealstate/?utm_medium=copy_link