|November 2020 Ventura County Real Estate Update|
|*****If this is your first blog post from me, please see the note at the bottom of the page for you. |
Reading emails, scrolling through social media, and turning on the news may fill your mind with anxiety or excitement but how can you gather facts rather than emotion? Below we can include some of these facts as it relates to Real Estate to give you some anchors in this emotionally charged time. In todays post we will explain the propositions that were voted on as it applies to real estate, the current market and finally projections about the future real estate market.
TOPIC #1: Voting Results
Proposition 15: ‘Split roll’
Voters have defeated Prop. 15, a potential change to the state’s landmark property tax law. No on 15 has 52% of the vote and Yes on 15 has 48%. The measure would have raised money for schools and local governments by raising property taxes on commercial and industrial real estate. It would have changed aspects of Prop. 13.
Proposition 19: Transfer of property tax breaks
California voters have approved Prop. 19 with 51% in favor when the race was called. Prop 19 will allow homeowners who are over 55, disabled or victims of natural disasters to transfer part of their property tax base with them when they sell their home and purchase a new one.
Proposition 21 – Local Rent Control
California voters have once again defeated a rent control measure. Early results show No on 21 at 60% and Yes on 21 at 40%, and the Associated Press is calling the race. This measure is similar to one on the ballot in 2016 and would allow cities and counties to implement rent control for certain residential properties that are over 15 years old.
Topic #2: Current Real Estate Market
According to the first graph, the number of SOLD homes in Ventura County was higher than the number of homes FOR SALE for the first time in the last 15 years for this last three months. This is dramatic. This shows that the people of Ventura County are very interested in taking advantage of low interest rates and buying a home. Regardless of any world issue, people are BUYING.
The second graph is showing once the again the extreme nature of our seller’s market over the last year. The Months of Inventory is near an all time low of .9 in the month of October. This means there simply aren’t enough homes to sell for all the people interested in buying.
The final three graphs may be the most telling of our current market. This shows that the average price of homes sold in Ventura County is at an all time high. Higher than the 2005, 2006, 2007 era. Included are graphs for the last 15 years, 2005-2007 when it reached its former peak and the last year of this same metric.
Topic #3: The Future
COVID, continued political decisions and financial distress of some Americans will continue to press on the Real Estate market. How these things will impact us is important to note, without a crystal ball of course. Future foreclosures will become an issue since the current moratorium on mortgages will end soon. BUT there are many people who still have plenty of equity in their homes and are still within their budget for monthly payments. This is important since in 2005, 2006 era many people had maxed out their home’s equity which led to empty value. Finally, beyond the numbers, common wisdom tells us that when there is a peak there is a crash. What will happen next?
See attached in-depth presentation on every type of metric you may be interested in. From Housing affordability to Renting numbers you can find it here. https://car.sharefile.com/share/view/s9a6e724b6754a5ca
Aren’t you always looking for a deal? Well the time could be here to find a great opportunity. Stay in touch with your realtor for good buys. With uncertainty comes moments for you to make wise choices. Let me know and I can keep an eye out for you to let you know if something comes up off market.
Rates are low! They are tantalizing you to buy. If you know you are going to stay in the home for a few years then it is probably worth it to take advantage of these low rates. This is a very tough time to buy BUT its still an option with some sellers being flexible. Also, you must talk to your realtor on how to be aggressive since it may be hard to get your offer accepted.
Right now is possibly one of the best times to sell, as there just aren’t enough homes on the market. In addition, buyers still want a “turn key” home.
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.
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