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Week of September 18th - September 24th
Property Tips and Tricks
Fall back but don't fall behind
While Spring cleaning has become a yearly tradition, I actually think a Fall cleaning and maintenance check is more useful here on the Monterey Peninsula due to our historic weather patterns. Recently, I came across two homes with less than acceptable ventilation. With the wet season around the corner, checking crawlspaces for adequate ventilation will help to keep a home free of moisture and increase air quality inside. Consider applying a waterproofing sealant or membrane to your foundation walls to prevent moisture infiltration. Areas with high moisture levels can lead to mold growth, wood rot, and the attraction of termites.
While we are on the topic, checking to make sure water has a path away from the structure is also important. If the ground around your house slopes toward the house rather than away from it, this is called "negative grade" and it can lead to drainage and site issues. Make sure there is adequate site drainage to take water away from the home. If you have a lot of landscaping/plants around the outside of your home, be mindful that watering these plants a lot can invite moisture into, and under, your home.
Real Estate News
Oversupply - it's not our problem
Whenever someone asks me about the state of the real estate market, it's quite the challenge to condense it into just a few sentences. Here on the Monterey Peninsula, our region boasts numerous submarkets, each exhibiting its distinct behavior. While they generally move in a similar direction, the intricacies of each submarket make it difficult to summarize our overall real estate landscape succinctly.
Amid the nationwide shuffle prompted by rising interest rates, there are valuable insights to be gleaned from examining how each market reacts to macroeconomic and microeconomic shifts. Take, for instance, the captivating case of Austin, Texas, which currently stands out. Over the past 14 months, Austin's residential real estate market has experienced an 11% dip, a stark contrast to its resilience during the 2008 crash; Austin is currently down the most among the 385 major housing markets. So, what's behind Austin's present downturn?
The pandemic prompted an influx of transplants to Austin as people from higher-tax states like California and New York sought refuge and lower living costs. With remote work options in play, this migration swelled, attracting both individuals and investors. The allure of reasonable housing prices, new housing supply, renter demand, and low mortgage rates made Austin an investor's paradise. As a result, home prices in Austin surged by a staggering 68% in under 24 months, outpacing Monterey County's 34% increase during the same period.
Fast forward to today, and Austin is experiencing a continued construction boom, helping to add a substantial increase in new home inventory. However, rising interest rates have cooled investor enthusiasm, leading to a further increase in supply, adding downward pressure to prices. Some experts even predict further declines, with Austin's market peak typically occurring during the spring months. Interestingly, home prices in Austin still remain approximately 40% higher than pre-pandemic levels, almost exactly mirroring the gain in home prices in Monterey County over the same period of time.
The recent announcement from the Federal Reserve indicates that interest rates are likely to remain elevated for an extended period. While some now predict the first rate cuts by or around September 2024, there's another facet to this market. If rates do indeed stay higher for an extended duration, holding onto cash becomes an attractive option, offering a higher return on investment. As for our local real estate market here on the enchanting Monterey Peninsula, it appears to be holding steady for now, with certain property types and price ranges even inching closer to their 2022 highs, largely a result of the continued strain on inventory. Our region has a history of avoiding the boom-and-bust cycles, primarily due to a consistent lack of supply and restrictions on development.
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