What Market Trends Have We Been Seeing Lately?

As we head into the fall market, I’d like to talk to you a little bit about some market trends I’ve been noticing lately in Southern California. Quite a lot has changed lately.

Last year’s average home price was $614,000. This year, the average home price has risen to $641,000. This is a substantial 3.5% to 5% increased. The average mortgage payment has gone up as well, from $2,800 last year to $2,900 this year depending on the type of house.

As far as some of my preferred lenders are concerned, the interest rates are still absolutely phenomenal and near 3.5% in most cases. If you need to get pre-approved or just speak with a lender, I can recommend some great lenders to you. They will help you get the lowest price possible.

We have had about 6,600 homes listed on the market and have sold 2,700 of them. Right now, we have about 2.7 months of inventory available, putting us in a great seller’s market. Pending sales and closed sales are up as well.

The time to make a move is now.

Although we are in a seller’s market, homes are taking slightly longer to sell. We were seeing homes sell in around 42 days this summer, but right now they are taking an average of 67 days to sell. The market is starting to flatten out for fall.

For those of you looking to put your home on the market, you should act quickly. As we continue into the fall and winter season, it’s going to take longer and longer for homes to sell. If you are looking to sell, it’s important that you price your home slightly below or right at market value. The price gap between what people ask for and what they’re netting at closing is around $9,000.

The market may have slowed down a little bit, but it’s still a great time to buy or sell. If you have any questions or would like to take advantage of this market, give us a call or send us an email. We would love to hear from you!

Can Home Buyers or Sellers Trust Zillow?

Is Zillow the best tool for your home search or home valuation? In general, I would say no, and there are a few reasons why.

First of all, Zillow gets its information for home value from the tax assessor’s office. The tax assessor usually has general information about the square footage of the home. Zillow has no way of knowing how many upgrades or additions you have made to the house. It can’t tell if your house is situated on a corner lot or by a high traffic area. Ultimately, you cannot rely on Zillow for an accurate home value.

You cannot rely on Zillow for an accurate home value.

You should also keep in mind that the pictures of properties on Zillow are beautiful because they come from real estate agents. Zillow doesn’t go out to the house and take those pictures themselves. Agents take the pictures and put them on their website to promote the home. Again, Zillow does not know about the actual condition of the home.

When you look at Zillow, you might also notice that there is more than one agent pictured next to the listing. Typically, the agent at the top is the listing agent for the home. The other three agents listed beneath that first agent pay to advertise on Zillow. You have to be careful about working with them; they might not know the area and they certainly don’t know about the house. If you are interested in a property or working with an agent in your area, it’s important to contact the actual listing agent for the home.

Finally, Zillow does not always have updated information. Your agent might run a search for a home you found on Zillow only to find that it’s no longer on the MLS. Zillow’s website does not update on a daily basis. The bottom line is that Zillow is not as accurate as the true MLS that real estate agents have access to. If you find a home you like on Zillow, it could already be in escrow, pending, or sold.

Hopefully, you have a better understanding of how Zillow actually works in the real estate world. If you are buying or selling a home, it is incredibly important that you work with a real estate agent who knows the area and can guide you through the process.

If you have any other questions about Zillow or about real estate in general, give me a call or send me an email. I would be happy to help you!

Is a Reverse Mortgage Right for You?

I wanted to talk about some programs that are helpful to empty nesters.

I'm joined today by Barry Krevoy from Finance of America to talk about some of these programs. One of the most popular financing option for some older homeowners that are not just refinancing, but buying, is a reverse mortgage. It's a good options for people making $2,000 or $3,000 a month on a pension or social security. A reverse mortgage also makes sense for those who are downsizing.

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Reverse mortgages don't work like they used to.

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It's important to understand, Barry says, that reverse mortgages don't work the same way they used to. They are FHA-insured loans, and when you make a payment, the interest gets tacked onto the loan. There is no qualifying financially other than showing that you can make payments on the property taxes and insurance. If the homeowner passes away, the people who the home is left to have six months to either sell the home or refinance.

Then, of course, you have the extra money you're bringing in on a monthly basis to do things like pay bills or travel. Go to Europe or take the kids to Disneyland; the possibilities are endless.

If you have questions for Barry, you can call him at 949-735-4009 or email him at barry.krevoy@financeofamerica.com.

As always, if you have questions about buying or selling a home, feel free to give me a call. Let's talk soon.

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