Have you ever wondered if history might hold the key to the future of the housing market? What if I told you that there's a chance the housing market could see a staggering 75% increase by the year 2030? Now, I'm not making any predictions, but it's worth considering the intriguing parallels between today's market and that of the 1980s, rather than the early 2000s. In the late 1970s and early 1980s, inflation ran rampant, and the Federal Reserve was forced to raise borrowing costs. At the same time, the baby boomer generation was reaching the age where they could become first-time homebuyers, much like the current wave of millennials. Notably, a shortage of housing supply was a pressing issue during that period. Comparably, the real estate market was already high and unaffordable back then, prompting people to stay in their existing homes due to the lure of lower interest rates—echoing the current scenario. These parallels make it intriguing to look at the early 1980s as a potential blueprint for what might unfold in the coming years. With this in mind, I decided to delve deeper and research what happened to home prices in the wake of this era. Surprisingly, over the next seven years, there was a remarkable 75% increase in median home prices, lending credibility to the notion that history could, indeed, repeat itself. Moreover, some prominent figures in the investment world are echoing similar sentiments. Real estate experts like Corcoran and financial guru Dave Ramsey are advocating that now might be an excellent time to enter the housing market, provided you have the means to purchase a home. While the future remains uncertain, it's essential to note that personal investment in the housing market can be a wise long-term decision. Furthermore, the current period, with relatively high interest rates, offers a unique advantage—there is less competition than we've seen in the past. This presents an opportunity to find your dream home, live in it for several years, and potentially refinance at more favorable rates when they eventually come down. In conclusion, the similarities between today's housing market and the conditions of the early 1980s are undeniably intriguing. While we can't predict the future, it's wise to consider historical patterns and expert opinions. The housing market might just hold untapped potential for those looking to invest and secure a place to call home in the long run.

In the current real estate market many people have been wondering why some homes are listed for a low price, knowing that they will likely sell for significantly over the asking price. This question has been asked frequently, so let's explore the three reasons why this strategy is commonly employed. Simply put, it's a marketing technique that yields several advantages for the seller. Reason 1: Ignite a Bidding War One of the primary reasons for intentionally listing a property at a low price is to spark a bidding war among potential buyers. By strategically setting an attractive price point, listing agents and sellers can generate significant interest and draw in a larger pool of prospective buyers. As more people visit the property and become emotionally invested, a sense of competition emerges, leading to multiple offers. This bidding war drives up the final sale price, often surpassing the initial asking price significantly. The goal is to create a sense of urgency and encourage buyers to offer higher amounts, resulting in a favorable outcome for the seller. Reason 2: Showcasing Prestige and Generating Buzz Listing a property at a lower price can also serve as a means to showcase prestige within the neighborhood and generate buzz. When a house garners attention due to an enticing price, it can lead to long lines of interested buyers during open houses and showings. This display of high interest not only highlights the desirability of the property but also catches the attention of other homeowners in the vicinity. Listing agents can leverage this opportunity to engage in organic conversations with potential sellers within the neighborhood, potentially securing future listings. The intentional low pricing strategy becomes a conversation starter and a chance to establish a positive reputation within the local community. Reason 3: Leveraging Market Dynamics and Trust Intentionally listing a property at a lower price can demonstrate the seller's understanding of market dynamics. Despite the lower initial listing price, sellers are confident in the market's ability to drive up demand and prices through competitive bidding. They believe that the strong demand will push the negotiation process in their favor, resulting in a final sale price that exceeds the original asking price. Additionally, sellers often have developed a trusting relationship with their listing agent and heavily rely on their expertise in negotiations. This trust ensures that the agent will skillfully navigate the process, securing the best possible outcome for the seller. Bottom Line While there may be a few less honest reasons for intentionally listing a property at a low price, the primary motivations behind this strategy are rooted in marketing tactics and maximizing the seller's profit. By creating a bidding war, generating buzz, and leveraging market dynamics and trust, listing agents and sellers aim to achieve the highest possible sale price. Understanding these reasons provides valuable insights into the common practices seen in the real estate market.

Recently, we had the pleasure of assisting some incredible sellers who could benefit from some upgrades to their front yard before selling. These sellers had dedicated significant time and resources to create an absolutely spectacular interior in their home. Unfortunately, they received orders for a transfer and found themselves lacking the time and liquid funds to complete the planned front yard landscaping. We understand how costly and demanding the process of moving can be, especially when searching for a new property. That's where our RealVitalize program came to their rescue. Through the RealVitalize program, we were able to step in and support them. We facilitated the hiring of a contractor via Angie's List, providing the sellers with the freedom to choose the best fit for their needs. They were able to review and approve the proposed work and plans for their front yard landscaping. Here's the best part – our program currently offers no fees or interest, making it an incredible opportunity. In just about a week and a half, we were able to have the listing signed, evaluate multiple contractor bids, complete the necessary work, capture stunning property photographs, and finally list the house on the market. The result was exceptional because it brought harmony between the beautiful work done inside the home and its newfound curb appeal. The sellers invested around $8,000 in the front yard landscaping, and as a result, we estimate that the house sold for approximately $20,000 to $25,000 more than it would have without this enhancement. BEFORE & AFTER If you're contemplating selling your house, consider inquiring about our RealVitalize program. It's an incredible opportunity to finish those last-minute projects without any upfront costs. We will guide you in selecting projects that offer a tangible return on investment, and the cost will be collected at the end of escrow, interest free, eliminating the need for you to front the money. Don't miss out on this awesome way to elevate your property and increase its market value. Let us know what questions you have!  

As a potential home buyer or seller, it's essential to understand the concept of months of inventory in real estate. It's a vital metric that helps gauge the state of the housing market, determine the level of competition, and make informed decisions about buying or selling a property. So, what is inventory in real estate? Simply put, it refers to the number of homes currently listed for sale in a particular area. The months of inventory, on the other hand, is a metric that shows how many months it would take to sell all the homes on the market, assuming no new listings were added. For instance, if there are 100 homes on the market, and 10 homes sell every month, the months of inventory would be 10 months (100/10=10). A high number of months of inventory indicates a buyer's market, while a low number suggests a seller's market. In San Diego County, the current months of inventory is 1.2, which is incredibly low. A balanced market typically has 4-6 months of inventory. The last time the county had such low months of inventory was during the pandemic, which created a surge in demand for housing. To give some context, in 2008, there were 13 months of inventory, which was a significant buyer's market. However, from 2012 to 2019, the county had a consistent 3-4 months of inventory. This stability allowed for a more balanced market for buyers and sellers. Today, the low months of inventory explain why we're seeing multiple offers on almost every home, particularly in the median price point. This shortage of inventory creates a more competitive market where buyers have to act fast and at times offer above the asking price to stand a chance. If you're interested in buying or selling a property in a particular area, it's crucial to know the months of inventory to make an informed decision. For instance, if the market has a low inventory level, you may have to adjust your expectations, increase your budget, or be prepared for more competition. In conclusion, understanding the months of inventory is an essential step in navigating the real estate market. Click here for graphs showing the current market and months of inventory for North County San Diego. If you need more information or data about your area please contact us and we would be happy to send that information your way.

Why We're Not Headed for a Housing Crash February 24, 2022 Today's housing market is nothing like it was in 2008. Let's connect to discuss the reasons why it's different.   Sources for Data in Video https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/xls/HHD_C_Report_2021Q3.xlsx https://www.nar.realtor/newsroom/existing-home-sales-surge-6-7-in-january https://www.newyorkfed.org/microeconomics/hhdc.html