The destructive nature of fire was demonstrated very clearly last week. If you are like me and my friends, I was in disbelief. I thought it wouldn’t happen here. It won’t happen in 2024. Well the fact is, it did. Obviously the first piece of gratitude is for the 0 casualties, yet the next issue is real estate; what will the future hold for our homes and home values? Many people have been asking this question. See below for some insight.
The tried and true answer to this question is related to the sun, or more specifically the “sunshine tax”. The fact remains that people want to live here because of the beautiful nature of our surroundings and access to everything we want and need. People are willing to risk natural disasters to live here. There is a lot of understandable pain and heartache and uncertainty in the short term, but our area holds significant attraction and will continue to hold that attraction. While there will be some confusion and anxiety and many questions in the next 6 months about rebuilding, people will rebuild and the houses will be better than before. If people choose not to rebuild, someone will purchase the lots and create beautiful homes. This will create a long term increase in the value of Camarillo Real Estate. If you are thinking of buying or selling in the short term, I also don’t see any major reductions in value. Often prices in the short term after a fire go higher because of the housing need from those displaced. The only factor that is consistent is the season. We are entering into a slower season of real estate. It doesn’t mean that a home can’t be bought or sold, it just means there is traditionally less action.
Please see below for other resources about fire and its effect on real estate values-
https://www.sciencedirect.com/science/article/pii/S0169204624000616
Also, see below for TWO important factors to consider in your next real estate move.
ONE: This below market summary is Camarillo focused, however, it is indicative of all markets in Ventura County right now. If you have a specific city you would like more information on, let me know. Take special note of the spike sold to list price ratio. If this metric stays at 100% or more it is a strong seller’s market because buyers are willing to pay list price. This shows that in September many homes sold for less than list price, but it then shot back up in October. This may indicate a slow down if this stays consistently low.
TWO: Here are the current mortgage rates over the last few months. Rates are supposed to go back down but time will tell…However, it is important to note that it is extremely doubtful for rates to drop back down to the 2,3,4% range. The “new norm” is 5.5% is a very low rate while 6.5% is probably going to be average.
Investors
If you have cash you are positioning yourself even better than before to get a good deal. Can it pencil? Ask me and we can talk through it together. As I mentioned, there can many challenges with getting homes to appraise right now. If you buy all cash there is typically no appraisal which is very attractive to sellers. There is RISK but over a long enough time frame you WILL make money. Let me know if you want to chat about your options and how to find that good deal.
Buyers
Timing is important to consider in a larger perspective…if you are afraid that the market will drop in the short term then your stress level will probably be very high and be incredibly hard for you to actually purchase. But if you have a longer term perspective of growing your equity and your value in your home over a period of time of 5+ years, then our area of Ventura County is unbeatable.
Sellers
Choosing what upgrades and fixes to do with your home is an important decision so you can increase your value without breaking your budget. By doing a few small things it can make a big difference. Mulch. Yes, mulch. New mulch is quite cheap but it makes the areas around bushes and planters look much more appealing to first time viewers of your home. Curb appeal is real. Paint and general clean up of the home can also put an important finished look for your home. A seller must understand the psychology of a buyer…if a buyer is going to pay a lot of their hard earned money into your home shouldn’t it look worth it? Talk with me to help you decide what is right for you.
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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