Are Current Mortgage Rates Affecting the Market?

Despite the recent rise in mortgage rates, our market is still offering great opportunities for both buyers and sellers. Here’s why.

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If you're concerned about the recent rise in mortgage rates, I want to reassure you — things are much better than they seem. Yes, mortgage rates have certainly risen since 2016. From a low of 3.44% last August, the 30-year fixed mortgage rate reached 4.12% in January and hovered just slightly below that into February. This increase means you’d be paying almost $100 more each month on a $250,000 purchase. That's a sizeable chunk of change, and it's got some people nervous However, the current rise in rates is unlikely to affect the real estate market anytime soon. Why? The rates we saw last year were an all-time record low. Historically, rates have been far higher. Ten years ago, the same 30-year mortgage rate stood at 6.34%. For much of the 90s, rates hovered between 7% and 10%. Throughout the 80s, average annual rates never dipped below 10%. In 1982, when I actually purchased a home, they were as high as 16%.

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Current rates are still at historically low levels.

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When viewed in this context, it's clear that current mortgage rates are still very, very low, and the real estate market is actually in a very good place. What does this mean for you? If you are looking to buy, the current low rates offer a great opportunity to afford an amazing home. If you're looking to sell, you are in a great position to do so quickly and for a top price. You see, last December did see a drop in home sales — but not because of any rise in mortgage rates. Instead, this slowdown was due to a constrained supply of new homes. In fact, there are plenty of eager buyers around our area, and prices continue to rise. If you want to discuss upcoming trends in home buying or selling or you need a referral to a lender, don’t hesitate to give us a call. We’re here to help you.

6 Reasons to Start Your Pre-Listing Renovations Early

Why is it smart to renovate your home before you sell it? There are six reasons to renovate early that I wanted to share with you.

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If you are thinking about selling your home this year, now might just be the time to start a renovation to help your sale. There are six reasons why:

1. You get to enjoy the new stuff. If you're spending a lot of money to update your home, you should at least get some enjoyment out of it before you turn the house over to someone else. If you've been waiting for a decade for new appliances, it would be a shame to move without cooking a few meals or holding a dinner party or two with them.
2. Renovations always take longer than expected. It's just a fact of renovations. If your timeline is six weeks, it's probably going to take you 10 or 12 at least. Give yourself plenty of time to avoid a stressful scramble at the end when you're trying to sell.
3. There could be issues you're unaware of. Selling your home is a lot harder when you run into new issues like mold or termites. Getting the jump on these issues ahead of time will give you the time you need to fix them and keep your sanity.
4. The renovation doesn't have to be huge. You don't always have to strip your house down to the studs. Sometimes you just need a light touch, so think small. Quick cosmetic upgrades help get buyers through your door for a quicker sale. The amount of time your home is on the market is key to determining what you'll net at closing.
5. You will need them. You might not like the idea of spending money on your home before selling it, especially if you already have your eyes on a new one. However, almost all homes need a little updating or staging to increase their value and help you sell quickly.
6. You'll get a return on your investment if you renovate smart. Updated homes typically sell faster and for more money if the updates are done well and are the kinds of updates buyers look for.

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Sometimes all it takes to add value is a light cosmetic touch.

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If you're not sure which renovations to consider, give us a call for some ideas for which popular remodels will add to the value of your home. This topic is especially near and dear to my heart this month since I'm starting a renovation of my own home for these six reasons. I'd be happy to refer you to any contractors you need. If you have any other questions, give me a call or send me an email soon. I look forward to hearing from you!

What’s the Latest News From Our Local Real Estate Market?

The latest stats are in for the San Luis Obispo County real estate market.

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I just received the latest market snapshot for San Luis Obispo County, so today I’m going to answer the question, “How’s the market?” Let’s break down the statistics and start in the northern part of the county, where the single-family median home value stands at $484,814. The year over year median price rose 18% after a two-month dip. The average property in this area is on the market for 68 days, and there are 196 properties currently listed for sale. Moving over to Scenic Coast, the single-family median home value fell for the second straight month and now stands at $540,000. The year over year median price also fell 4%. However, the average property in this area is on the market for only 58 days, and there are only 75 properties currently listed for sale.

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Across the county, fortunes varied for buyers and sellers.

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Heading down to San Luis and Avila Beach, the single-family median home value stands at $720,195. The year over year median price rose 5%. The average property in this area is on the market for 50 days, and there are 35 properties currently listed for sale. Here in the southern part of the county, the single-family median home value stands at $568,000. The year over year median price adjusted upward 1%. The average property in this area is on the market for 78 days, and there are about 200 properties currently listed for sale. If you’re interested in knowing what your home is worth in your neck of the woods or want to know the value of a home you’re interested in buying, please feel free to give me a call. I’d be happy to speak with you!