Real Estate Market

The Wealth Effect – Are You Feeling It?

The Wealth Effect What is the wealth effect? It can be described in simple terms as “if my neighbor just got that price for their home, then I can get that or more for mine!” It’s the effect of seeing a too good to refuse number to get a seller motivated to sell. At least that’s what buyers are hoping. As prices continue to climb to record highs, it’s the wealth effect that often drives “maybe...

Are Capital Gains Looming for Real Estate Sales?

I’ve never met anyone that likes paying taxes, and most of us try to find ways to avoid paying more of them, but if the current Administration has their way, you may be paying a lot more when you sell your appreciated real estate assets.  To pay for nearly $2 Trillion in planned spending, President Biden is proposing significant tax increases on Americans making over $1M.  While that is only a small...

“Are we there yet?”

"Are we there yet?" Anyone who's been on a road trip either as a kid or those with kids will know this saying very well.  In a lot of ways this sort of sums up 2020.  The pandemic, election, second round of the pandemic, and so on.  To give you some words of encouragement, "We are almost there."As for the pandemic, news of a vaccine is good news, and it provides a much needed light at the end of the...

New Listings are Up, Pending Sales are Down – What does that mean for you?

It’s June and the beginning of the “summer selling season” for real estate in Valmonte.  Instead of a bunch of flowery talk about how great everything is about the market, I’m going to go out on a limb and dare to be more realistic than perpetually optimistic.  The local real estate market is setting up for a price correction.  The bigger question, and one I don’t have an immediate answer to,...

2018: Valmonte Real Estate Forecast – Are we in a bubble? What about taxes? And Should I Buy or Sell in 2018?

Spring greetings from our humble abode here in Valmonte.  After a bumpy start in the stock market, I write with the prospects of a great year ahead in both the overall economy, as well as the local real estate market.  The Valmonte real estate market is coming off a strong end to 2017, and a robust start to 2018.  In fact, in the last 24 months, no home in Valmonte has sold for less than $1,000,000! In...

Valmonte Halloween Fun and November 2017 Market Update

Once again, Halloween in Valmonte did not disappoint! The Halloween tradition is one of the unique things that makes living in Valmonte lots of fun, and it was great to see all the families and kids getting into the spirit again this year. Our kids had a great time, and I know we went through over 500 pieces of candy at our home alone (and I know we were not alone)! As for real estate, we are entering...

Mid-Summer Musings on Valmonte Real Estate

Market climate - Valmonte There are currently 16 homes on the market, approximately double the amount year-over-year, and near the highest level in the current market cycle The absorption rate is 4.7 months, and nearing the peak of 6.4 months supply in October 2014   Prices on a square foot basis are near record highs ($734/ft) Days on Market for the last quarter are at record lows (41 days)...

Inventory Is Up, Price Growth Is Stalling, but Demand Remains

The 2017 second quarter numbers are in, and yes, life is still great in Valmonte.  For many of you reading this, I assume you currently live in Valmonte, and like I hear from many neighbors, you plan on leaving feet first or "in a pine box" as one neighbor so eloquently put it.  So what I'm about to tell you about house prices probably doesn't really matter that much.  For the rest of you that are...

HOT Start to 2017 in Valmonte, and across Palos Verdes Estates

Summary: Rising inventory, homes are selling faster, and sellers are listing at realistic prices Real Estate for the first quarter of 2017 in Valmonte has started out hot out of the gate.  Compared to Q1 of 2016 we are seeing the following trends in Valmonte: New listings are up 62% YOY Closed sales are up 56% YOY The median sales price is stable at $1.47m Homes are selling 25% faster than...

More Inventory (and more rain) – February 2017 Valmonte Market Update

A quick look at the numbers I write this latest post as yet another rain storm passes through our quiet little slice of paradise here in Valmonte and another big one is on it's way.  It's been nice to have all the water, but I have to say, I'm spoiled by our typical 279 days of sunshine each year.  As for the real estate market, continuing with the theme we saw in January, the welcome sight of new homes...

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