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Week of January 22nd-28th
Property Tips and Tricks
Investing in stories
When making an investment into an asset, numbers and statistics often take center stage. Being a "numbers person" myself, I continually find myself searching for and parsing data in hopes of making a better informed decision. When it comes to real estate, however, the power of storytelling cannot be overlooked.
Stories are memorable, easily resonate with people, and perhaps more importantly, they have the power to influence decisions. Can you remember a time when you decided to buy this, not that, based off a story?
Every property has a history; it's how that history is presented and crafted into a compelling narrative that can transform any home into a desirable property and distinguish it from other offerings. I'm not just talking about bricks and mortar here; it’s about intertwining tangible aspects like craftsmanship and design with intangible elements such as exclusivity, memories, and lifestyle. This narrative can captivate potential buyers, stir emotions, forge connections, and ultimately, enhance value.
Featured Property
PEBBLE BEACH
2933 Old 17 Mile Drive
4 BD 2.5 BA 2442 SF $3,500,000
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Real Estate News
Homeownership on the rise
Despite higher interest rates, the real estate market continues to chug along. It seems many buyers have adopted the philosophy of "its hard, do it anyway". Since 2015, America has welcomed approximately 10 million new homeowners. But who is propelling this steady surge in homeownership? The answer may surprise you.
Recently, I was helping a family member purchase a home in another part of the country. Not representing them, more coaching them along. The area where they were purchasing has become more competitive over the past 18 months, even with higher mortgage rates. This is an area that is not affluent, and many buyers would be seemingly priced out of the market. So what factor continued to drive demand and push prices higher? Retiring Baby Boomers.
Many people reaching retirement age have owned their homes for a significant amount of time, allowing them to benefit from home value appreciation and mortgage principal paydown. The result is this cohort has built a significant amount of home equity and although they may be working for another couple of years, they are buying their retirement homes now. This trend has intensified competition in certain regions, much like the example I shared earlier.
Another demographic contributing to the rise in homeownership is the younger middle-class households, aged 30-45. This trend reflects the growing population of individuals at the typical home-buying age. Due largely in-part to the proliferation of social media, I believe that homeownership has emerged as a mainstream “wealth hack,” convincing more individuals in this age group of the advantages of homeownership.
So, what happens now? Well, it is challenging to speculate on the future, but many are eagerly awaiting the Fed's next scheduled meeting early this coming week for further indications of future rate cuts. If there is one thing we've learned over the past 18 months, its that buyers have been a lot more resilient than many thought heading into a high interest rate environment.
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.
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