School has started and the real estate market is still booming! In Ventura County July 2019 saw the most homes sold in two years, and there were more homes sold in Camarillo in July 2019 than homes were sold in any month for the past three years. Thats a big deal. Sellers are getting top dollar for their home and buyers are happily buying the home that fits for their lifestyle. In addition, buyer interest rates have still been at almost the best ever with many 30 year fix rates close to 3.5%. What does that mean? The market is still balanced and there is no sign of anything that will disrupt this momentum. Saying this statement is of course dangerous, as politics, macroeconomy or many other factors can alter the course of this healthy market. For now though, sellers are selling and buyers are buying. See below for a description of each stat and rough outline for each type of real estate interest.
Based on the above stats, please review the following ideas to help guide your decisions:
IF you can find an under market value property, it is always a great time to buy. Everyone wants a deal, but the only way to find an outstanding deal is to know someone. This market has become one based on relationships. Who do you know that may be selling? If you are going to buy a single family home or condo on market to invest, you MUST know the area very well to determine if it is in a pocket that is highly desirable. In addition, there may be opportunties with REO properties. Another aspect of investing to be aware of are the easing of restrictions on ADUs (Accessory Dwelling Units). These could be a great opportunity, but there are risks associated. If you are aware of the risks up front and are prepared for them you can get a great deal. Let me know if you would like to know more about them.
While it is increasingly a seller’s market, interest rates are STILL very low. This is important as every decrease in that rate means hundreds of dollars in your pocket. What is the opportunity cost for waiting to buy for the perfect market? Opportunity. The more time that goes by is more time that you aren’t paying down a mortgage. For example, a home purchase of $600,000 with 10% down with a current market rate of 3.875% will have a $3,599 per month payment. While the same details with a 4.5% rate of a year ago will create a $3,796 per month payment. Speak with your mortgage professional to help get a great idea on your budget and buying power.
As noted above, now is a great time to sell. Home values are up, inventory is down and buyers are motivated. Stats continue to indicate we are still in a good time to sell. An additional point to consider, if you are thinking about remodeling before you sell here is some important advice: you may not get your money back BUT you will sell faster. Right now buyers want a “turn key” home. Is the investment worth it? Lets talk. We still have plenty of the year left to put your home up for sale to capture the hot summer market.
If you liked these stats please reach out and let me know about it! If you have any questions about the Real Estate market or the process of buying or selling a home please contact me. Contact me today if you are ready to buy or sell a home.