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Week of April 1st-7th
Property Tips and Tricks
Backup Plans
In case you missed it, there was a pretty neat SpaceX presentation recently, with Elon Musk detailing the progress of their space program and the crazy-sounding plan ahead to venture to, and inhabit, Mars. Although I wasn't alive in the 1960s, what SpaceX is doing today feels cool in the sense of the NASA from back then, the classic NASA. So what does this have to do with real estate, and why should you care?
Turns out, launching rockets to Mars ain't cheap, and believe it or not, a lot of the R&D expense is being funded by internet subscriptions. Starlink internet service uses a number of satellites in a low Earth orbit to deliver relatively fast internet across the globe. Locally, we are a bit spoiled for options when it comes to internet service providers, with Comcast/Xfinity and AT&T offering fast internet to much of the Monterey Peninsula. So, if you've got a house on the Monterey Peninsula, Starlink isn't going to be your main internet provider but it could have its place as a source for backup internet.
This past winter, we experienced several power outages on the Monterey Peninsula, with many households losing internet service as well, even with their backup generators on full boil. Why does this happen? Well, the internet service provider has backup battery, but their backup battery can go out/get used up, and when that happens, you no longer have internet at your house, even if you have your own power source.
Starlink has a plan that allows you to pause and pickup service on demand, and pay as you go. If you are not quite ready to make the jump to Starlink as a primary internet provider, it could be an ideal backup internet provider for your household as it works differently than cable internet and will still operate during an extended power outage (provided you can power the Starlink hardware). The cost to initiate this plan is relatively cheap. Plus, you'd be investing in a planetary insurance policy of sorts.
Real Estate News
In the News and Local Market Update
Below is a quick update on news related to the economy, foreclosures, and the national housing market. After, we will recap the real estate market in Monterey County so far in 2024.
Federal Reserve and Economy:
- Fed Chair Powell reiterated that the Federal Reserve is still gathering data on the economy and inflation before making decisions about interest rates.
- March US job growth exceeded expectations, and wages increased steadily, indicating a strong end to the first quarter. However, most of the new jobs are part-time, which raises questions about the overall strength of the job market.
Foreclosures:
- Foreclosures across the country have increased by 500%. Sounds alarming, right?
- Let’s put it in perspective:
- In Q4 2023, there were 40,000 foreclosures (5 times more than Q4 2021).
- But in Q4 2019, there were 71,000 foreclosures.
- Back in the recession years (Q4 2008 and Q4 2009), we saw 417,000 and 463,000 foreclosures, respectively.
- So, while the percentage increase seems high, the actual numbers aren’t as dire as they might appear.
Best Time to Sell Your Home:
- According to a Zillow report, homes listed in early June yield the highest profit, followed by May.
- Zillow, despite some reservations, remains a reliable source for this type of data.
Housing Market Trends:
- Nationally, median list prices have slightly decreased by 0.6% compared to last year, indicating some easing in the housing market.
- New listings dropped by 7.8% recently, likely due to the Easter holiday, ending a 22-week growth streak.
- In March 2024, there were nearly 400,000 new listings across the country, a 15.5% increase from March 2023, but still 17.2% below the levels seen in March 2019.
- Days on market remain relatively stable.
Monterey County
Listings and Sales:
- In 2024, around 10% more listings have come online compared to the same period in 2023.
- Both the number of sales and the sales volume this year are similar to last year, with a slight increase in the median sales price.
Inventory:
- As we progress further into the year, inventory is increasing, which is expected.
- New listings added:
- January: 142
- February: 158
- March: 212
Comparison with Previous Years:
- March 2024 had a similar number of homes available for sale compared to March 2023, but it’s still about 50% less than in 2019.
Median Prices:
- In Monterey County:
- Median list price (2024): $998,050
- Median sale price (2024): $860,000
- Median list price (2023): $1,065,000
- Median sale price (2023): $840,000
- Median list price (2019): $660,000
- Median sale price (2019): $581,000
January to March over the years
Activity Summary:
- New listings:
- 2019: 767
- 2023: 460
- 2024: 512
Sales volume:
- 2019: $438,051,758
- 2023: $471,667,694
- 2024: $456,987,220
Number of sales:
- 2019: 523
- 2023: 359
- 2024: 357
Barring any large macroeconomic shifts, home sales should continue to be relatively strong, especially if mortgage rates maintain stability.
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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.
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