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You can feel it in the air! The season has changed and Fall has arrived. Historically, fall is the time when the real estate market slows down after the summer rush as families settle into a new school year. And this year is no different…or is it?
In the last few weeks, we have seen a flurry of price reductions and listings are now taking longer to sell. Could this slow down be more than seasonal cyclical changes or is it the market correction certain economists have been predicting for real estate?
Fortunately, today’s market lacks the key indicators of a a true market correction such as:
Creative Lending – as real estate professionals, we know lenders are diligent in ensuring today’s buyers can properly qualify for home loans.
Unemployment – “Help Wanted” signs are everywhere and the national unemployment rate is 3.7% and decreasing.
Economic Expansion – Since June of 2009, the US has experienced ongoing economic expansion making this the country’s second longest on record. In fact, if growth continues as expected by July of 2019 this expansion will become the longest in history.
Foreclosures – According to ATTOM Data Solutions, in the first six months of 2018 showed foreclosures down 15% from a year ago and 78% from 2010.
What does this mean for Central Coast Buyers? Buyers are in a great position, especially renters and first-time home buyers. Lenders have great incentives and programs for first-time home buyers and bidding wars over a desired property are no longer the norm. Also, the $650 tax credit allotted to renters pale in comparison to the thousands of dollars in mortgage interest deductions making purchasing home financially prudent.
Should Central Coast Sellers be worried? Not at all! In fact, here at C21 we encourage sellers to take part in “Fall Ball” vs. “Spring Fling”. During the Fall, buyers have less inventory to compare and choose from rather than the multitude of properties during the “Spring Fling.” Sellers that do not have unique selling features such as ocean views and stellar locations can find selling a home easier.
Real estate is still in full swing here on the Central Coast! So enjoy the change in the weather and look for the opportunities that the new season brings!
About CENTURY 21 Hometown Realty – Hometown Realty is the leading real estate firm on the central coast of California with offices spanning Santa Barbara County and San Luis Obispo county offering expert agents and convenient locations.