Monterey Peninsula Real Estate Blog

Information about Monterey Peninsula Real Estate including new MLS Real Estate Listings by the Monterey Peninsula Home Team. You will see posts about Monterey Peninsula cities including Monterey, Pacific Grove, Pebble Beach, Carmel, Carmel Valley, Seaside, Marina and the HWY 68 Corridor.  These posts will have stories and information about local issues including real estate, news, and other helpful information, plus anything else we want to write about ;-).

June 13, 2022

More Americans Investing in Real Estate

More Americans Choose Real Estate as the Best Investment Than Ever Before

More Americans Choose Real Estate as the Best Investment Than Ever Before | MyKCM

Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey from Gallup. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before.

The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:

More Americans Choose Real Estate as the Best Investment Than Ever Before | MyKCM

If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision.

How an Investment in Real Estate Can Benefit You During High Inflation

Because inflation reached its highest level in 40 years recently, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month.

If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as rents rise. As Danielle Hale, Chief Economist at realtor.com, notes:

“Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”

When Inflation Has Risen in the Past, Home Prices Have Too

Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like this:

“There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .”

And since rising home values help increase your equity, and by extension your net worth, homeownership is historically a good hedge against inflation.

Bottom Line

Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

March 14, 2022

Luxury Ocean View Estate for Sale - Pebble Beach

Luxury Ocean View Estate for Sale in Pebble Beach

Search for similar Pebble Beach Luxury homes for sale

Listing Details

  • Pebble Beach Luxury Ocean View Home for Sale
  • 1522 Riata Road, Pebble Beach, CA 93953
  • $7,500,000
  • MLS# ML81880605
  • Bedrooms: 5 Suites
  • Bathrooms: 5 Full, 2 Half
  • Approx. Square Feet:  6,000 square feet (Measured by a Third Party )
  • Lot Size: Over 2.21 Acres

Call Mark Bruno (831) 917-8190 or Jeff Davi (831) 594-3290 with the Monterey Peninsula Home Team to see inside this property.

 

1522 Riata Rd in Pebble Beach

Luxury Ocean View Estate for Sale in Pebble Beach Above “The Lodge”

1522 Riata in Pebble Beach overheadYou are going to love this beautiful example of a Monterey Colonial Spanish Revival style home that dates back to when Samuel F B Morse was shaping Pebble Beach into the famous destination it is today. Located just above the famed Pebble Beach Golf Course, Beach and Tennis Club, Casa Palmero Spa, and The Lodge, this roughly 6000+/- square foot home has been expertly sited on a rare 2+ acre gently sloping parcel of land offering its new owner privacy and infinite possibilities. The current residence offers amazing details and charm seldom seen in new architecture including herring bone hardwood floors, old world plaster walls, high ceilings, large second story decks, multiple fireplaces and even a mural hand painted by a notable artist. 

The main level of this classic Monterey Colonial has a modest entry, that leads you to a beautiful living room with three sets of 1522 Riata Living roomFrench doors, a large fireplace and old school oak herring bone style hardwood floors. The French doors lead out to a large 1400 square foot terrace featuring a BBQ and a fireplace of its own. 

To the left of the entry is a powder room and a door leading to a lower level bedroom suite, a den and a billiard room with a fireplace that also leads to the patio area. The far right side of the entry leads to the staircase to the upper level as well as the kitchen area with a butlers pantry area, breakfast nook, and the dining room featuring a hand painted mural on the walls and a French door to the patio. In addition, the main level has another bedroom suite, a mud room with laundry, plus stairs to access the lower level basement.

The upper level is home a very spacious master suite and two additional ensuites, all with nice views of Point Lobos and Carmel Monterey Colonial Style Home for saleBay along with the Monterey pines and oak trees in the back yard. The upper level also includes two decks totaling more than 300 square feet, one accessible from the hallway via 2 sets of French doors overlooking the front entry and the other accessed via 3 sets of French doors from the master and one French door from the adjoining bedroom with great views of Carmel Bay and the setting sun.

There is a 1000 square foot guest house that is more like spacious apartment with a living room, dining area, a small kitchen a bedroom and a bathroom.

Additional amenities include a large basement that would make a great wine cellar or additional storage, a two-car garage, plus 2.21 acres of land.

 

SFB Morse Pebble Beach

Samuel F B Morse and the Del Monte Forest

“Without Sam Morse, Pebble Beach would be a West Coast Coney Island.” - Bing Crosby

Although Samuel FB Morse is thought of as the guy that developed Pebble Beach, what isn’t widely known is that he was an early conservationist and loved the land and trees and wanted to conserve as much as he could. Read more about SFB Morse here.  https://www.montereyherald.com/2019/02/03/the-boss-and-the-beginnings-of-pebble-beach/

 

Pebble Beach Lodge Neighborhood

Pebble Beach Lodge neighborhoodThe Lodge area of Pebble Beach includes some of the most luxurious and spectacular homes on the Monterey Peninsula. Some of the luxury homes in this part of Pebble Beach are built right on the edge of the Pacific Ocean making them some of the most sought-after ocean front homes in the world! Other homes are built on either Pebble Beach Golf Links or Cypress Point Golf Club, two of the most desirable golf courses in the world! And still other homes are built on home sites with amazing Pebble Beach ocean views of Point Lobos, Stillwater Cove, Carmel Beach, and the Pacific Ocean…Not to mention breathtaking views of some of the most famous golf holes in the world. If you are looking for a truly unique and luxurious piece of real estate, the Lodge area of Pebble Beach might just be what you are after.

The Lodge area includes all the homes built on the Pebble Beach Golf Links and Cypress Point Golf Club, as well as all of the homes built along the coastline between Carmel Gate and Spyglass Hill Road where it meets the Pacific Ocean. This area also includes the “dunes” portion of Spyglass Hill Golf Course (the part of the course that is south of Spyglass Hill Road), Peter Hay Golf Course and the prestigious Lodge at Pebble Beach.

Click for a video of this homes location in Pebble Beach

Click here to take a 3D TOUR of this home

Click here to see MORE PICTURES of this home

 

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March 11, 2022

Monterey Luxury Townhome for Sale

Monterey Luxury Townhome for Sale

Search current inventory of Monterey condos and townhomes for sale.

  • Luxury Townhome for Sale Near Downtown Monterey
  • 7 Via Joaquin Unit 1, Monterey, CA 93940
  • Price: $989,000
  • MLS number: Coming Soon
  • Bedrooms: 3
  • Bathrooms: 2.5
  • Size: approximately 1964 square feet (county records) 

Call Mark Bruno at 831-917-8190 to see if this property is still available and arrange a showing.

Monterey Luxury Condo for sale

Remodeled Luxury Monterey Condo for Sale Near Downtown

Luxury Townhomes in Monterey, CALocated close to downtown Monterey, Old Fisherman’s Wharf, several beaches and parks, as well as Del Monte Shopping Center, this smaller, private complex is tucked securely behind a private gate. 

As you enter Villa Via Joaquin through the private gate, you are greeted to a beautifully landscaped central courtyard with a water fountain. Unit 1 is the last unit on the right-hand side and is very handsome looking from the front with lots of windows and a gazebo. This townhome is a very spacious at 1964 square feet, (county records) and includes 3 bedrooms, 2 and ½ baths and is an end unit.

As you enter the home, you can’t help but notice the dramatic entry with high ceilings all the way up to the second level. This home is a reverse floor plan with the kitchen and living areas on Luxury townhome and condos in Montereythe second floor and man what a fantastic job was done on the remodel. Full advantage was taken of this end unit configuration with windows everywhere and tons of natural light. You almost feel as if you are in a tree house with great views of the Peter’s Gate area of Monterey filtered through the trees. The living room has high vaulted ceilings with a resurfaced gas log fireplace, genuine hickory hardwood floors, a beautifully remodeled powder room, a custom wet bar, and two balconies. 

The kitchen is also drenched in natural light and features newer Shaker cabinets, granite counter tops, newer stainless appliances, a skylight, and a large breakfast nook. It even has a passthrough to the formal dining room.

The lower level is home to a spacious master suite with a gas log fireplace, a private deck with open views and two closets. The Remodeled kitchen in a luxury Monterey Condo for Salespa-like bathroom features a wide vanity with Shaker style cabinets, a Carrara marble countertop with dual sinks, and a custom shower with subway tiles. In addition, there are two more bedrooms, a beautifully remodeled hall bath, and a laundry area.

Other amenities include a gated garage entry with two end parking spaces and an 8’x10’ storage room.

Villa Via Joaquin is a small 15-unit condo complex located off of El Dorado Street near Pacific Street in Monterey, CA. It is tucked back off the main roads and most people don’t even know it exists, making it a hidden gem here on the Monterey Peninsula. With a private gated courtyard, and gated garage access, it is very secure and offers a high level of privacy. 

The Villa Via Joaquin condo complex is near downtown Monterey, Villa Via Joaquin Condo Complex Monterey CAOld Fisherman’s Wharf, several beaches, and parks, as well as Del Monte Shopping Center, making it a great place to call home. Monterey and the surrounding areas have all sorts of activities going on every single week, including several farmer’s markets, great restaurants, shopping, whale watching, fishing, surfing…You get the idea. The lifestyle here is fantastic, and so is the climate.

Click here to see additional images of this Monterey condo.

Monte Regio/Peter’s Gate Neighborhood Real Estate

Monterey's Monte Regio/Peter’s Gate neighborhood is full of an eclectic mixture of homes and people.  You will find early 1900's Victorian era homes, Monterey Colonial style homes, craftsman bungalows as well as other small cottages mixed together with newer construction, various remodeled homes, duplexes and even a few condos complexes like this one. This is a favorite neighborhood for locals and those looking to move here based on its proximity to not only Monterey’s thriving downtown area, but also everything else that makes the Monterey Peninsula a great place to visit and call home. The lifestyle associated with living this close to the water with one of the world best climates is really second to none.  The flatter terrain associated with this location in particular it especially nice as walking, running and bicycling just about anywhere is easier from here than in other parts of Monterey.  

Find Similar Homes in the Area

 

March 9, 2022

Key Factors That Impact Home Affordability Today

Key Factors That Impact Home Affordability Today

Key Factors That Impact Affordability Today | MyKCM

You can’t read an article about residential real estate without the author mentioning the affordability challenges that today’s buyers face. There’s no doubt homes are less affordable today than they were over the last two years, but that doesn’t mean homes are now unaffordable.

There are three measures used to establish home affordability: home prices, mortgage rates, and wages. Let’s look closely at each of these components.

1. Home Prices

The most recent Home Price Insights report by CoreLogic shows home values have increased by 19.1% from last January to this January. That was one reason affordability declined over the past year.

2. Mortgage Rates

While the current global uncertainty makes it difficult to project mortgage rates, we do know current rates are almost one full percentage point higher than they were last year. According to Freddie Mac, the average monthly rate for last February was 2.81%. This February it was 3.76%. That increase in the mortgage rate also contributes to homes being less affordable than they were last year.

3. Wages

The one big, positive component in the affordability equation is an increase in American wages. In a recent article by RealtyTrac, Peter Miller addresses that point:

“Prices are up, but what about wages? ADP reports that job holder incomes increased 5.9% last year but rose 8.0% for those who switched employers. In effect, some of the higher cost to buy a home has been offset by more cash income.”

The National Association of Realtors (NAR) also recently released information that looks at income and affordability. The NAR data provides a comparison of the current median family income versus the qualifying income for a median-priced home in each region of the country. Here’s a graph of their findings:

Key Factors That Impact Affordability Today | MyKCM

As the graph shows, the median family income (shown in blue on the graph) is greater than the qualifying income needed to buy a median-priced home (shown in green on the graph) in all four regions of the country. While those figures may vary in certain locations within each region, it’s important to note that, in most of the country, homes are still affordable.

So, when you think about affordability, remember that the picture includes more than just home prices and mortgage rates. When prices rise and rates rise, it does impact affordability, and experts project both of those things will climb in the months ahead. That’s why it’s less affordable to buy a home than it was over the past two years when prices and rates were lower than they are today. But wages need to be factored into affordability as well. Because wages have been rising, they’re a big reason that, while less affordable, homes are not unaffordable today.

Bottom Line

To find out more about affordability in our local area, let’s discuss where home prices are locally, what’s happening with mortgage rates, and get you in contact with a lender so you can make an informed financial decision. Remember, while less affordable, homes are not unaffordable, which still gives you an opportunity to buy today.

March 4, 2022

Supply and Demand in Today’s Market Feb 2022

Supply and Demand in Today’s Market [INFOGRAPHIC]

Supply and Demand in Today’s Market [INFOGRAPHIC] | MyKCM

Some Highlights

Check out the supply and demand for real estate by state in this graphic. This is a simple way to see why real estate prices are doing what they are doing in your state.
Here’s what that means for you and your plans to buy or sell in most states where supply is low, and demand is high:
For buyers, expect competition, be ready to move fast, and be prepared to submit your strongest offer. I can tell you how many of my buyers are kicking themselves for not going in just a little higher on "the one."
For sellers, know your house will be the center of attention and that it’ll likely sell quickly and get multiple offers. This doesn't mean you shouldn't get it ready to be on the market. Houses that are in great shape with fresh paint, new flooring and other needed repairs and updates are selling for the highest prices and in the shortest amount of time. Sometimes a $10k investment can yield $50k or more in returns.
If you’re ready to move, let’s connect to talk about our local area and how you can take advantage of today’s unprecedented housing market.
Feb. 22, 2022

Real Estate Voted Best Investment

Real Estate Voted the Best Investment Eight Years in a Row

Real Estate Voted the Best Investment Eight Years in a Row | MyKCM

In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below):

Real Estate Voted the Best Investment Eight Years in a Row | MyKCMIf you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.

Why Is Real Estate a Great Investment During Times of High Inflation?

With inflation reaching its highest level in 40 years, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrateexplains it like this:

A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

If you’re a renter, you don’t have that same benefit, and you aren’t protected from increases in your housing costs, especially rising rents.

History Shows During Inflationary Periods, Home Prices Rise as Well

As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes buying a home a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbesnotes:

Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.

Bottom Line

Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

Feb. 17, 2022

4 Reasons Forbearance Will Not Lead to Wave of Foreclosures

4 Reasons Why the End of Forbearance Will Not Lead to a Wave of Foreclosures

4 Reasons Why the End of Forbearance Will Not Lead to a Wave of Foreclosures | MyKCM

With forbearance plans about to come to an end, many are concerned the housing market will experience a wave of foreclosures like what happened after the housing bubble 15 years ago. Here are four reasons why that won’t happen.

1. There are fewer homeowners in trouble this time

After the last housing crash, about 9.3 million households lost their home to a foreclosure, short sale, or because they simply gave it back to the bank.

As stay-at-home orders were issued early last year, the overwhelming fear was the pandemic would decimate the housing industry in a similar way. Many experts projected 30% of all mortgage holders would enter the forbearance program. Only 8.5% actually did, and that number is now down to 3.5%.

As of last Friday, the total number of mortgages still in forbearance stood at  1,863,000. That’s definitely a large number, but nowhere near 9.3 million.

2. Most of the 1.86M in forbearance have enough equity to sell their home

Of the 1.86 million homeowners currently in forbearance, 87% have at least 10% equity in their homes. The 10% equity number is important because it enables homeowners to sell their houses and pay the related expenses instead of facing the hit on their credit that a foreclosure or short sale would create.

The remaining 13% might not all have the option to sell, so if the entire 13% of the 1.86M homes went into foreclosure, that would total 241,800 mortgages. To give that number context, here are the annual foreclosure numbers of the three years leading up to the pandemic:

  • 2017: 314,220
  • 2018: 279,040
  • 2019: 277,520

The probable number of foreclosures coming out of the forbearance program is nowhere near the number of foreclosures coming out of the housing crash 15 years ago. The number does, however, draw a similar comparison to the three years prior to the pandemic.

3. The current market can absorb any listings coming to the market

When foreclosures hit the market in 2008, there was an excess supply of homes for sale. The situation is exactly the opposite today. In 2008, there was a 9-month supply of listings for sale. Today, that number stands at less than 3 months of inventory on the market.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains when addressing potential foreclosures emerging from the forbearance program:

“Any foreclosure increases will likely be quickly absorbed by the market. It will not lead to any price declines.”

4. Those in power will do whatever is necessary to prevent a wave of foreclosures

Just last Friday, the White House released a fact sheet explaining how homeowners with government-backed mortgages will be given further options to enable them to keep their homes when exiting forbearance. Here are two examples mentioned in the release:

  • “For homeowners who can resume their pre-pandemic monthly mortgage payment and where agencies have the authority, agencies will continue requiring mortgage servicers to offer options that allow borrowers to move missed payments to the end of the mortgage at no additional cost to the borrower.”
  • “The new steps the Department of Housing and Urban Development (HUD), Department of Agriculture (USDA), and Department of Veterans Affairs (VA) are announcing will aim to provide homeowners with a roughly 25% reduction in borrowers’ monthly principal and interest (P&I) payments to ensure they can afford to remain in their homes and build equity long-term. This brings options for homeowners with mortgages backed by HUD, USDA, and VA closer in alignment with options for homeowners with mortgages backed by Fannie Mae and Freddie Mac.”

When evaluating the four reasons above, it’s clear there won’t be a flood of foreclosures coming to the market as the forbearance program winds down.

Bottom Line

As Ivy Zelman, founder of the major housing market analytical firm Zelman & Associatesnotes:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

Feb. 17, 2022

Why This Is Not A Housing Bubble

4 Simple Graphs Showing Why This Is Not a Housing Bubble

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

recent survey revealed that many consumers believe there’s a housing bubble beginning to form. That feeling is understandable, as year-over-year home price appreciation is still in the double digits. However, this market is very different than it was during the housing crash 15 years ago. Here are four key reasons why today is nothing like the last time.

1. Houses Are Not Unaffordable Like They Were During the Housing Boom

The affordability formula has three components: the price of the home, wages earned by the purchaser, and the mortgage rate available at the time. Conventional lending standards say a purchaser should not spend more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased, and the mortgage rate, even after the recent spike, is still well below 6%. That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.

In the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addresses that exact point:

“The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward.”

Affordability isn’t as strong as it was last year, but it’s much better than it was during the boom. Here’s a chart showing that difference:

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

If costs were so prohibitive, how did so many homes sell during the housing boom?

2. Mortgage Standards Were Much More Relaxed During the Boom

During the housing bubble, it was much easier to get a mortgage than it is today. As an example, let’s review the number of mortgages granted to purchasers with credit scores under 620. According to credit.org, a credit score between 550-619 is considered poor. In defining those with a score below 620, they explain:

“Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”

Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers. Here’s a graph showing the mortgage volume issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the 14 years since.

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

Mortgage standards are nothing like they were the last time. Purchasers that acquired a mortgage over the last decade are much more qualified. Let’s take a look at what that means going forward.

3. The Foreclosure Situation Is Nothing Like It Was During the Crash

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice. Here are the numbers during the crash compared to today:

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program, which was created to help homeowners facing uncertainty during the pandemic. However, there are fewer than 800,000 homeowners left in the program today, and most of those will be able to work out a repayment plan with their banks.

Rick Sharga, Executive Vice President of RealtyTracexplains:

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect.”

Why are there so few foreclosures now? Today, homeowners are equity rich, not tapped out.

In the run-up to the housing bubble, some homeowners were using their homes as personal ATM machines. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area.

Homeowners, however, have learned their lessons. Prices have risen nicely over the last few years, leading to over 40% of homes in the country having more than 50% equity. But owners have not been tapping into it like the last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion. With the average home equity now standing at $300,000, what happened last time won’t happen today.

As the latest Homeowner Equity Insights report from CoreLogic explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

There will be nowhere near the same number of foreclosures as we saw during the crash. So, what does that mean for the housing market?

4. We Don’t Have a Surplus of Homes on the Market – We Have a Shortage

The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation. As the next graph shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures), and that caused prices to tumble. Today, there’s a shortage of inventory, which is causing the acceleration in home values to continue.

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.

Bottom Line

If you’re worried that we’re making the same mistakes that led to the housing crash, the graphs above show data and insights to help alleviate your concerns. If you have specific questions about the current market, click here to call us .

Jan. 6, 2022

Why waiting to sell could cost you

Why Waiting To Sell Your House Could Cost You a Small Fortune

Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM

Many homeowners who plan to sell in 2022 may think the wise thing to do is to wait for the spring buying market since historically about 40 percent of home sales occur between April and July. However, this year’s expected to be much different than the norm. Here are five reasons to list your house now rather than waiting until the spring.

1. Buyers Are Looking Right Now, and They’re Ready To Purchase

The ShowingTime Showing Index reports data from more than six million property showings scheduled across the country each month. In other words, it’s a gauge of how many buyers are out looking at homes at the current time.

The latest index, which covers November showings, reveals that buyers are still very active in the market. Comparing this November’s numbers to previous years, this graph shows that the index is higher than last year and much higher than the three years prior to the pandemic. Clearly, there’s an influx of buyers searching for your home.

Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM

Also, at this time of year, only those purchasers who are serious about buying a home will be in the market. You and your loved ones won’t be inconvenienced by casual searchers. Freddie Mac addresses this in a recent blog:

“The buyers who are willing to house hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”

And that theory is proving to be true right now based on the number of buyers who have put a home under contract to purchase. The National Association of Realtors (NAR) publishes a monthly Pending Home Sales Index which measures housing contract activity. It’s based on signed real estate contracts for existing single-family homes, condos, and co-ops. The latest index shows:

“…housing demand continues to be high. . . . Homes placed on the market for sale go from ‘listed status’ to ‘under contract’ in approximately 18 days.”

Comparing the index to previous Novembers, while it’s slightly below November 2020 (when sales were pushed to later in the year because of the pandemic), it’s well above the previous three years.

Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM

The takeaway for you: There are purchasers in the market, and they’re ready and willing to buy.

2. Other Sellers Plan To List Earlier This Year

The law of supply and demand tells us that if you want the best price possible and to negotiate your ideal contract terms, put your house on the market when there’s strong demand and less competition.

recent study by realtor.com reveals that, unlike in previous years, sellers plan to list their homes this winter instead of waiting until spring or summer. The study shows that 65% of sellers who plan to sell in 2022 have either already listed their home (19%) or are planning to put it on the market this winter.

Again, if you’re looking for the best price and the ability to best negotiate the other terms of the sale of your house, listing before this competition hits the market makes sense.

3. Newly Constructed Homes Will Be Your Competition in the Spring

In 2020, there were over 979,000 new single-family housing units authorized by building permits. Many of those homes have yet to be built because of labor shortages and supply chain bottlenecks brought on by the pandemic. They will, however, be completed in 2022. That will create additional competition when you sell your house. Beating these newly constructed homes to the market is something you should consider to ensure your house gets as much attention from interested buyers as possible.

4. There Will Never Be a Better Time To Move-Up

If you’re moving into a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 5% over the next 12 months. That means it will cost you more (both in down payment and mortgage payment) if you wait. You can also lock in your 30-year housing expense with a mortgage rate in the low 3’s right now. If you’re thinking of selling in 2022, you may want to do it now instead of waiting, as mortgage rates are forecast to rise throughout the year.

5. It May Be Time for You To Make a Change

Consider why you’re thinking of selling in the first place and determine whether it’s worth waiting. Is waiting more important than being closer to your loved ones now? Is waiting more important than your health? Is waiting more important than having the space you truly need?

Only you know the answers to those questions. Take time to think about your goals and priorities as we move into 2022 and consider what’s most important to act on now.

Bottom Line

If you’ve been debating whether or not to sell your house and are curious about market conditions in your area, let’s connect so you have expert advice on the best time to put your house on the market.

Dec. 17, 2021

2022 Housing Forecast

2022 National Housing Market Forecast

The #1 question I get asked this time of year is what is going to happen with the housing market next year. I have found digesting what is being forecasted on a national level is a great way to help understand what might happen to the Monterey Peninsula housing market in 2022. Here is some great information from some industry professionals on what they believe is going to happen in 2022.

 

2022 Housing ForecastSome Highlights

 

Mortgage rates are projected to rise and so are home prices.

Experts are forecasting buyer demand will remain strong as people try to capitalize on rates and prices before they climb, creating another strong year for home sales.

Let’s connect and discuss what this means for your home.

 

Mark Bruno

Monterey Peninsula Home Team