US 10 year bond rates just hit a 33-month low! This is the rate that ties closest to mortgage rates.
Swiss 10 year rates have hit an all time world record low of -.77. Boggles the mind, give the government 1000 francs, and after ten years it will return 920 of them.
Even if San Diego real estate only yields 4% long term (I think it is well higher), that is more than double what you get investing in bonds, and the real estate is taxed at a lower rate the entire way.
There’s no guarantee we’ll ever get another real estate bubble, but the amount of money on the sidelines making 1.8%, 1%, 0%, -0.5% is gigantic.
We’ve got nearly all the ingredients: tight inventory, low mortgage rates, booming economy, growing population. Memories of losing money 2007-2010 are getting hazy… or non existent for the post 1995 birth cohort.
