What’s the Latest?
Week of September 25th - October 1st
Property Tips and Tricks
Understanding the 7/8ths
What do icebergs and homes share in common? Most of the crucial elements that comprise a house are concealed from plain sight, akin to an iceberg drifting in the sea. This can present unexpected, unforeseen issues for homeowners.
Today, in various regions across the country, opting for a new construction home often proves more financially prudent than purchasing an existing one. It's a remarkable fact. Just recently, I was exploring several new construction properties, and one, in particular, unveiled numerous concealed defects, typically not discernible during a standard pre-purchase home inspection. These covert aspects underscore why conducting thorough due diligence on a home sometimes necessitates a more comprehensive and invasive inspection, akin to peeling back a layer or two of the house to unveil its hidden intricacies.
To illustrate, consider a home purchase I assisted buyers with. The property featured a deck over the garage, and we wanted to ensure that the deck's drains were functioning correctly. To do so, we decided to test the drains by flooding the deck with water. However, this presented a surface-level view of the situation. To delve deeper, we sought permission from the seller to investigate further. This led us to cut into the garage ceiling and wall, where we discovered an issue with one of the plumbing joints – it was loose, causing water from the deck to seep between the walls. This condition could have gone unnoticed for much of the year when rain is typically scarce if we hadn't conducted this more invasive inspection. It serves as a reminder of the importance of not only identifying red flags surrounding a property, but also paying heed to potential yellow flags and launching appropriate investigations.
Real Estate News
Housing here, housing there
The national housing market is currently encountering a situation that I believe is, in part, influenced by the typical seasonal dip in home prices and reduced transaction volume due to elevated interest rates. Overall, inventory remains scarce on the national level compared to historic trends, although inventory is expanding slightly as certain homebuyers are adopting a wait-and-see approach, anticipating potential reductions in mortgage rates in the near future. While there's a slight dip in demand at the moment, it's important to highlight that there hasn't been a significant surge in supply. Nationally, the real concern arises if we experience a substantial increase in supply coupled with a big drop in demand.
But what's going on here on the Monterey Peninsula?
In a June newsletter, I commented about the seasonality of new listings in our market and how more listings usually come to market during the summer months versus other times of the year. Looking back on the month of September, we see that the number of new listings was lower than any month from May through August, which is consistent with the trend of previous years here on the Monterey Peninsula. The total active inventory is down from its summer high, also consistent with previous years here on the Monterey Peninsula. Also down is the number of contingent/pending deals. I expect these trends to continue as we head further into the fourth quarter. Overall, there is less sales activity than this time last year, but also less inventory. Interestingly both the median sale price and price per square foot for the month of September in the County was higher than any other month on record. These will be good metrics to track as we move closer to the end of the year.
Worked with me in the past? Share your experience.
Jonathan Balog
DRE# 01980970
Broker
M: 831.747.0310
[email protected]
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
OUR WEEKLY UPDATE