Commercial Real Estate News

A Century of Service

In 1919, Oliver Wendell Pearson arrived in Fresno to visit his brother and, together, they bought a ranch. Seeing firsthand the developing business of agriculture, Mr. Pearson noted the need for a realty company that would specialize in marketing and selling farm and ranch property. The O. W. Pearson Company would later become Pearson Realty. The core principles of the firm reflect Mr. Pearson’s personal beliefs in honesty, trust, reliability and positive results.

Today the stockholders, agents, brokers, and staff adhere to the founding principles—to continue a tradition in trust since 1919.

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This is the eight time the Federal Reserve has raised interest rates since 2015 with the interest rates now at 4.6%.

This is bad news for consumers who borrow and good news for consumers who save.

What it Means for Borrowers

When the interest rates rise, it means that the borrower has higher costs. It affects the economy across the nation and tends to influence the set rates for credit cards and other borrowing methods.

If you have a loan with a variable rate, you need to keep an eye on it. As the Federal interest rates go up, variable interest rates on credit cards, home equity line of credit, adjustable-rate mortgages, and even student-loan variable rates will follow suit.

Greg McBride, the Chief Financial Analyst for Bankrate.com, recommends that borrowers should pay off their credit card debt as quickly as possible. All consumers should find credit cards that offer 0% interest rates for 18 months.

If you have a home equity line of credit, ask lenders if you can set a fixed interest rate on the outstanding balance. Keep in mind that it’s not always an option.

If you have an adjustable-rate home loan, you should refinance right away to a fixed rate. It may be currently higher than your current adjustable rate, but rates are expected to keep rising so it would be lower in the long run.

If you’re in the process of buying a home, lock into the fixed interest rate as soon as possible before it rises again.

What it Means for Savers

Deposit rates for savings accounts and CDs usually rise and fall with the federal interest rate. McBride pointed out that for the first time in over a decade, savers are able to earn a profit from their savings account that keeps up with inflation.

Federal rates are expected to continue rising with one more rate hike in 2018 and 3 rate hikes scheduled for 2019.

Federal rates rise to prevent the economy from growing too fast and keep prices from drastically rising.

Real estate in Fresno County is strong and expected to continue its steady streak this year, according to a panel of local experts at the 2017 Fresno County Real Estate Forecast.

The industrial sector still leads commercial real estate. Home prices continue to rise at a healthy rate while interest rates remain low. And despite a rash of store closures, retail remains hot with new concepts and “retailtainment” hitting the area. Yes, retailtainment. More on that later.

Realtors and commercial brokers still wince when they talk about how tough market conditions got in Fresno County during the Great Recession.

So it was with seeming delight that experts in various aspects of real estate reported Wednesday to a crowd gathered at the DoubleTree by Hilton Hotel Fresno Convention Center that post-recession improvements to local real estate values seem likely to continue, though in some sectors at slower rates than in recent years.