Welcome to my real estate blog.
Probably the number one question I am continually asked is “what’s going on in the real estate market”. In the last six months we have seen the market make some rather significant changes. To give you a few stats, in July 2018 there were 55 new single family home listings placed on the market (this number does not include new subdivision that do not report on the MLS). In January, 2019 to date we have had 31 as of midnight tonight. So in the last six months we saw a much higher inventory with a reduction of buyers in the market. The reduction of buyers was partly due to rising interest rates, but also in part due to the “season” As we headed towards the holiday season, November 1 to January 1 we normally see a decline in buyers and in the market overall. After all who wants to shop for a new house and especially move during that time. This shift in the market started moving towards a buyers market where inventory exceeded demand. Thus prices began reducing as buyers were able to negotiate a great price on a home.
Now, as we head for the end of January we are starting to see the market make another shift. More buyers are coming into the market. For the last 3 weeks we have seen a clear increase in activity at our open houses and agent showings. We are seeing more first time buyers coming into the market, rather than existing homebuyers relocating.
We are also starting to see listings that previously sat on the market with little to no activity start to gain some momentum with some serious foot traffiic.
So what does this all mean? Oh how I wish I had the crystal ball of real estate...but all indicators as pointing to a strong real estate market in 2019. I personal thoughts are that prices are going to continue to rise, but not as much as they did in 2018. I think that interest rates are going to continue to do small drops and increases, but nothing drastic. In spite of things happening with our government, we have a strong economy with very little unemployment. Consumers still feel very confident, and real estate continues to be one of the best investments you can ever make.
If you are a buyer, this is a great time to get off the fence. There are still many homes that have been on the market for 30+ days that you can negotiate for an exceptional price. Sellers, this is a great time to get your home in tip top shape and ready to hit the market in Spring when the real estate really begins to heat up.
On the new home front...new subdivisions in Hollister are still building like crazy. But they too have seen the effects of the last six months. Most of them no longer have a waiting list and move in times are much shorter. Some of them also have great incentives, such as credits towards closing costs and upgrade credits. Although the prices on a new home are typically not negotiable, you can save on other costs sometimes by using their preferred lender.
If you ever have any questions about real estate, the local market in Hollister or in California in general..I am always happy to answer your questions.
Tammy Davis, Broker Associate DRE#01860356
**Next week I will discuss...”What’s The Difference between a Realtor and a Broker”?