December 2023 South Bay Market Update Mortgage Rate Relief, Inventory Remains Constrained Resilient. If asked to describe the South Bay real estate market in one word, it would be Resilient. Despite attention grabbing headlines of doom and market busts, the local real estate market has faired well for 2023. It hasn't been a year of price growth, but considering we have endured the highest...
Real Estate Market
“Be fearful when others are greedy. Be greedy when others are fearful.” Warren Buffett Based on a detailed review of the South Bay Real Estate Market, I believe we are coming into a window of buying opportunities that we have not seen in several years. The three key indicators that support my belief include the following: Days on Market have increased nearly 40% from a year prior; Months...
The real estate market is going through some interesting times this summer. We have low inventory, prices are holding at all time highs, and interest rates are up about 2% from the start of the year. When viewed with my 2021 goggles on, it looks like buyers have gone on vacation this summer. While some may just be on vacation and put their home search on hold, others may have stopped looking...
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...
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?" 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...
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,...
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...
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...
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)...