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WILL 2020 BE A GOOD TIME TO BUY IN CALIFORNIA?

Economists say that 2020 will be positive but not stellar for the housing market in California.

Although last year they expected mortgage rates to rise and they fell keeping real estate markets much stronger than anticipated. Lesson…real estate predictions can be tricky business.

CALIFORNIA STILL SHOWING GROWTH

Despite some predictions from expert economists that the west would face a tough 2019 real estate market, California proved to be one of the better housing markets in the country. In fact, the Central Coast median home prices were up 3.3% year over year according to the California Association of Realtors. Southern California had a 7.5% rise, the Central Valley up 6.3%, while the Bay Area had only a 2.2% rise.

PERSISTENT LACK OF SUPPLY

California’s housing market will continue to be fueled by a persistent lack of supply, keeping pressure on rising home purchasing and rental prices. Sales of homes $500k and $1 million rose by 15.5% on average, yet sales under $300k dropped sharply by 14.2% and homes over $2 million dropped slightly by 3.2%, according to California Association of Realtors.

SELLER OPTIMISM RISING

In CAR’s buyer survey, respondents who thought it was a good time to sell increased 4% to 51%. Only 24% of buyers stated they felt it was a good time to buy, down only 1% from last year, despite lower rates. Prices, down payments, and selection are likely the key factors stopping buyers from buying homes. With higher real estate prices, first time buyers will continue to struggle to come up with a down payment thus keeping the rental market strong.

Whether you are looking to buy or sell, market conditions are looking good for 2020. As the #1 broker on the Central Coast, C21 Hometown Realty’s Agents have the most homes listed and the most homes sold! Visit one of the ten local offices throughout the Central Coast or click on c21home.com.

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.

2020 VISION FOR REAL ESTATE IS LOOKING GOOD

Lower than expected interest rates kept real estate strong in 2019 and many experts predict 2020 will keep rolling in the same direction. According to a recent article in Forbes, Odeta Kushi, deputy chief economist at First American, shared that mortgage rates will remain low next year, between 3.7 and 3.9%, fueling a healthy real estate market.

PRICES TO KEEP RISING

Tight inventory and increased demand will keep pushing prices higher. In fact, with mortgage rates either staying the same or actually dropping, competition will increase for buyers which may result in bidding wars. Redfin predicts one in four homes will result in a bidding war which is great news for home sellers who may have been holding out when most homes prices dropped slightly on the Central Coast over the past year. The Forbes article shared data from CoreLogic, stating home prices should tick up by 5.6% by next September which is more than 3.5% from this year.

ECONOMIC GROWTH, NOT A RECESSION

Although many economists have predicted a mild recession in 2020, a housingwire.- com report states, “Current conditions point to a recipe for continued economic growth, not a recession. Growth itself may be slower than the strong pace we’ve seen at times throughout the recovery, but growth will still occur for at least the next year.” Reasons cited for the economic growth are a healthy consumer confidence and job growth.

HOME SIZES WILL SHRINK, BUT AMENITIES ARE KING

Inventory will continue to be tight as Millennials and Generation Z enter the market, but Baby Boomers are not budging from their long-time homes. Zillow predicts that new home sizes will shrink for the fourth time of five years due to younger buyers having less money and can’t afford to purchase larger homes. To make up for square footage, many new homes are offering upgraded amenities to attract buyers.

Whether you are looking to buy or sell in the new year, experts agree you should enter the real estate market early in 2020 to take full advantage of the growing market. As the #1 broker on the Central Coast, C21 Hometown Realty’s Agents have the most homes listed and the most homes sold! Visit one of the ten local offices throughout the Central Coast or click on c21home.com.

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.

Should you buy a second home? Predictions for the 2019 market.

In view of the healthy economy, you may be thinking of buying a second home as a vacation getaway, as housing for family members or as an investment property.
That could reap great benefits, but you should only proceed with insight into this year’s secondary home market.

A few predictions from real estate specialists:

In general you can expect a buyer’s market, according to Bloomberg.

Costs may be attractive in vacation areas, where prices grew only 14.8 percent in the past three years compared to 25.2 percent in non-vacation areas. Another report notes vacation markets have underperformed the overall market every year but one since 2010 (except in the Midwest, where they’re now slightly overperforming). Factors in the downward slope may include everything from climate change to demographics to Trump’s tax reforms.

Because interest rates may rise this year, buyers may wish to act soon, anticipating slightly higher loan rates for secondary homes.

Should You Use a Professional Stager When Selling Your Luxury Home?

If you’re planning to put your luxury home on the market, consider staging it first.

Staging is the process of “styling” a home to maximize its appeal to potential buyers. It can be as simple as eliminating clutter or reorganizing a bookcase, or staging can involve removing, replacing or re-arranging furniture, adding accessories or taking down heavy draperies that block the light.

According to StagedHomes.com, which provides training and awards the Accredited Staging Professional designation to real estate agents, designers and others interested in becoming stagers, staging a home helps it sell faster and at a higher price. In fact, in a recent survey, the site found that a staged home sells in an average of 10.3 days, compared to a non-staged home, which averages 84.6 days on the market.

Ask your real estate agent about staging options when listing your home. Some agents have a background in design and feel comfortable handling the staging themselves, especially if the home doesn’t need much to prepare it for sale, while others may recommend a staging professional.

SEASONS CHANGE…AND SO HAS THE MARKET

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.

TRUE AMERICANA MEANS BIG BUSINESS FOR CENTRAL COAST

It’s Mid-State Fair time here on the Central Coast! A timeless tradition of true Americana, celebrating our heritage of agriculture, arts, crafts, competitions and show-stopping entertainment. Bright lights, carnival rides, fair food, exhibits and top-name entertainers were just some of the reasons that a record-breaking 430,000 guests made the trek to Paso Robles in 2017.

If the entertainment line-up is a top indicator for guest attendance, 2018 will be on track to deliver large Fair audiences once again. The free concert stage is hosting well-known artists such as Crystal Gayle, Monte Mills, Kris Kristofferson, Bear Market Riot, Big Bad Voodoo Daddy and newer artists For King & Country and recent winner of The Voice, Cassadee Pope. The main stage will light up each night with stars such as Florida Georgia Line, Pitbull, Demi Lovato, Gabriel Iglesias, ZZ Top, Tim McGraw with Faith Hill and Luke Bryan.

In addition to the draw of America’s top entertainers, Mid-State Fair offers great family entertainment with Livestock Competitions, Horse Shows, Petting Zoo, Country Finals Rodeo, Robotics for Kids, Tractor Races, Youth Performances and a newly revamped Carnival. The Mid-State Fair offers great entertainment value for the low admission price of $8-$12. If you will be attending multiple days, the Season Pass is the way to go, just $30 for children 6-12 and $60 for Adults offering admission everyday to the fairgrounds.

Not only do Central Coast residents flock to this event but it attracts huge crowds from all around the state. That means big dollars and big business for the area, especially Paso Robles. Hotels, motels and restaurants feel the biggest impact but even retail stores benefit from the tens of millions of dollars the Mid-State Fair brings to the community each year.

Where do Central Coast Home Buyers Come From

Buyers Shopping for Central Coast Real EstateCentury 21 Hometown has more consumer website traffic (over 600,000 monthly visits) than any other brokerage or franchise website on the Central Coast according to Hitwise. Only Century 21 Hometown partners Realtor.com, Zillow.com, and Trulia.com have more. No other brokerage ranks in the top 10 for the Central Coast DMA, Hitwise reports. The Central Coast DMA or Demographic Market Area is defined as the stretch of the California coastline that includes Ventura County, Santa Barbara County, and San Luis Obsipo County. The image to the left explains where consumers are connected to the internet when they access C21Home.com for property information. Our ability to attract buyers from beyond the local market area is a key reason why sellers choose to list their home with a Century 21 Hometown agent.

As you might imagine, most buyers for real estate on the Central Coast are local. San Luis Obispo and Arroyo Grande, two of the region’s largest cities account for the most significant amount of consumer traffic. Where it gets interesting is looking at the other cities in the top 10. They include, in order of traffic volume: Bakersfield, Los Angles, Santa Maria, Paso Robles, San Francisco, Atascadero, Paso Robles, and Orcutt.

“I am not surprised at all by these results,” says Century 21 Hometown Realty broker Amy Gallagher. “I review every transaction for the company and I routinely see the buyers coming in from the Central Valley, Bay Area, and Los Angles.” Central Coast is known by many to provide one of the best lifestyles in America and real estate here trades at a discount to property closer to the major metropolitan cities.

The Future Looks Bright

The county planning commissions in Ventura, Santa Barbara, and San Luis Obsipo Counties have taken care to manage growth. Every planned development project goes through a careful consideration process to ensure that expansion does not overwhelm community roads, school, or other population sensitive services. We have a condition whereby far more people are trying to move to the Central Coast than move away. This holds property prices stable and drives property value growth.  If you would like to see our recent Central Coast Market Trends, here is a sample for the CCRMLS market area for Northern Santa Barbara County and San Luis Obispo County.

Central Coast Market Trends

 

Free Credit Scores Abound

As a home buyer, a mortgage may play an important role in your purchase. It is a good idea to check your credit history before starting the home buying process. You will want credit hygiene to enhance your opportunity to negotiate the best possible mortgage program.  A handful of credit card issuers are betting that you’d like to see your credit score every month. Discover, Barclaycard US and First Bankcard’s have started offering their 35 million cardholders free access to their credit scores.

The score they’re sharing ? called FICO ? is used by credit card issuers to decide whether to give you a charge account and what interest rate to charge you.

Discover is putting your credit score on your monthly statement. Barclaycard and First Bankcard customers will have to visit their credit card company’s website to see their score.

You don’t have to open a new credit card account to see your credit score. Credit.com, CreditSesame.com and CreditKarma.com will give you a credit score (without making you pay for credit monitoring services as some other sites do).

The score you get on those sites can be different from your FICO score and from the credit scores used by mortgage companies, auto dealers and other types of lenders.

All credit scores are calculated using information from your credit report, but each type of credit score is based on a proprietary formula devised by the company that sells the score. While different scores have different number ranges they all predict how likely you are to repay.

So if you have good credit based on one scale, you should have good credit based on another credit score’s scale, even though the two numbers might be different.

 

How Long Will It Take To Sell

How long will it take to sell a home is a key question asked by every seller during the listing presentation. The answer usually depends on price. If you price too high, not only will it take longer to sell, but you will typically get less money for the home than it is worth. Listings that languish in an overpriced status typically get “low-ball” offers from buyers. The longer on the market, the lower the offer. The old strategy of pricing high and hoping for the best typically yields the worst results.

The best strategy for pricing a property is pricing low. Not only will you sell the home in a shorter time frame, but the value pricing is likely to attract bidders who over bid the listing price or who will pad their bid with fewer contingencies. It sounds counter productive, but pricing below market attracts far more interested buyers and a higher sale price.

Regardless of your pricing strategy, you should know what to expect.

Most homes sell in 30 to 60 days.

This is followed by 60-90 days, then oddly, 120-180 days. 90-120 is awfully close behind.

Why you should call us for real estate help

There are literally millions of real estate information websites on the internet for you to use, but they are not all created equally. We are happy that you choose ours. What you may not know if that real estate agent and broker websites are governed by laws that protect you in ways that consumer websites are not. One of the most important features of an agent or broker website is the assurance that the property information that we provide on this website is accurate and up to date. We run our property updates every 15 minutes to make sure that every listing on this website is as current as possible. Websites like the newspaper website, Zillow, Trulia, Craigslist and others have as many as 50% of the listings which are inaccurate or not for sale.

We ran across this humorous video today that you might enjoy.

We need more listings

Our company has grown from 100 agents to more than 300 over the past few years. You have probably see more Century 21 Hometown Yard Signs than any other local company. We have had to open offices in nearly every town on the central coast to support the growth. Century 21 Hometown Realty is currently working with more than 850 buyers company wide. There are only 994 listings available – which means that there is only about a month of inventory available. Please contact one of our offices or agents today if you can refer us to anyone looking to sell their home.List your home for sale with Century 21 Hometown Realty

Specifically, we are looking for homes with the following criteria

South County San Luis Obispo: 3 bedroom price from 300,000 to 550,000.

San Luis Obispo: Any property that can be rented. We have investors looking for rental units to fill demand for rental housing.

Atascadero and Paso Robles: Land suitable for new home building.

Santa Maria: Condos, Duplexes, or 2 bedroom starter homes.

Arroyo Grande or Edna Valley: Luxury Homes – 3500 to 6000 sq ft or lots suitable for new homes.

Feel free to pass this along to anyone you know who may have an interest in selling their home.

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