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Week of August 28th- September 3rd
Property Tips and Tricks
So(lar) what
There are several reasons why adding solar to your home is a wise decision. Investing in a sustainable future has additional benefits when it comes to residential solar - it also increases property values. According to the Appraisal Journal, your home value increases $20 for every $1 reduction in your yearly energy bills.
While it can be hard to stomach the cost of adding solar to your existing home, there are more and more options available in addition to simply adding solar panels to your roof, which could prove difficult depending on the type of roof, orientation of the house/roof, and tree coverage. Companies are coming out with freestanding modular solar canopies that can be installed very quickly, in as little as a day. These canopies can provide shade, storage, as well as function as a carport.
Bear in mind there are programs available to encourage solar adoption, including the Residential Clean Energy Credit, which is a tax credit that allows you to deduct up to 30% of the cost of your solar energy system from your federal taxes. So, if you spend $20,000 on solar, it would really only cost you $14,000, provided you can take advantage of the tax credit.
Real Estate News
August: The time that you become well, red
Data reported from the Case-Shiller home price index was recently released and the takeaway is that prices nationwide are sitting at just 0.02% below their all-time highs set in June 2022. Bear in mind this index has a two month lag and covers the broader real estate market.
A host of recent economic indicators show increasing headwinds for the economy as we move towards the Fall, including a decrease in jobs openings, an increase in the unemployment rate, and a decrease in wage growth.
If more people lose their jobs, it could push some to sell. Also, if the unemployment rate continues to grow, and grows quickly, it could put pressure on the Fed to cut rates.
Just yesterday, the interest rate on federal student loans reverted to pre-pandemic levels. Borrowers, who had been enjoying zero interest rates since March 2020, will now face interest rates ranging from 3% to 7%, with payments resuming in October. This change affects approximately 43 million Americans with student loan debt, with an average monthly payment of around $350, totaling roughly $15 billion each month. This shift may lead some to tighten their spending as the year draws to a close.
August witnessed mortgage rates reaching their highest levels in 23 years, with the average 30-year mortgage rate peaking at 7.48%. Consequently, the cost of buying a home is now roughly 46% higher than renting.
New listings in the US Housing Market increased in August, which marked the first month-over-month increase from July to August since 2016. In Monterey County, more listings came on in the month of August than the month of July this year, but August 2023 still had the lowest count of new listings for the month of August in the 23 years the MLS has been keeping track of this statistic.
For those interested in exploring market statistics, you can access historical local market data dating back to the year 2000 on my website. Interactive graphs and charts covering various metrics offer insights into the local market. So far in 2023, we've seen encouraging figures. In Carmel-by-the-Sea, the price per square foot and median sale price are both above 2022 levels.
I was fortunate enough to handle a few transactions this past month in Carmel-by-the-Sea, including one in the $5 to $6 million range and one in the $7 million dollar range. My boots on the ground perspective is that there is strong demand for newer or upgraded homes but homes that are quite large or homes that require a lot of work are taking a bit longer to find a buyer.
If you're interested in delving into local statistics, I've provided links below to the stats pages on my website, which are updated monthly.
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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