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Week of November 13th-19th
Property Tips and Tricks
Contrarian thought: focus on what you can't change
When it comes to evaluating a property, it's easy to get caught up in the possibilities of what can be changed - the kitchen remodel, fresh paint on the walls, or replacing outdated fixtures. While these improvements can certainly enhance a space and increase property value, shift your perspective and focus on what truly makes a property special: its inherent qualities that cannot be altered.
Here are some aspects to consider when evaluating a property:
1. Location: The neighborhood, proximity to amenities, parks, beaches, shops, restaurants, health and care infrastructure, and transportation options are all factors that can contribute to the overall appeal and value of a property. These elements are fixed and play an essential role in shaping your lifestyle but also are drivers of demand for a specific property.
2. Views and Natural Surroundings: A breathtaking view of rolling hills or serene waterfront can create an unparalleled sense of tranquility. The sound of water flowing through a nearby brook or river, although it may be out of sight, can elevate a property's ambiance. Ever faced the task of landscaping a barren lot? Imagine a magnificent oak tree shading the backyard, one that has likely been there for 100+ years...I think you get the idea.
3. Natural Light: A key feature sought by many buyers is ample natural light indoors. It's effortless to control excessive light, but it's challenging to replicate when absent. Consider the house's orientation—does it face a particular direction, offering southern or western exposure?
4. Historical Significance: Properties with historical significance carry stories and nostalgia. Even updated properties may boast unique historical elements, like a fireplace, adding a distinct charm.
Real Estate News
Home price growth here tops region
Looking back over the past 4 years, Monterey County has experienced home appreciation of 51%, outpacing other counties in the region.
Let's take a quick look at the numbers comparing August-October Median Sales Prices, 2023 vs. 2019, by County:
51% - Monterey
50% - Santa Clara
41% - Napa
41% - Santa Cruz
41% - Sacramento
38% - Alameda
31% - San Mateo
31% - Solano
30% - Sonoma
28% - Contra Costa
26% - Marin
2% - San Francisco
Keep in mind inflation over the 4-year period was approximately 20%..so every County in the region outpaced inflation except for San Francisco.
Even though the median home price growth in Monterey County has outperformed other counties, the median dollar per square foot is still on the lower end. Let's take a look at the 3-Month rolling stats as of October 2023 by County:
$1,083 - San Mateo
$1,029 - Santa Clara
$966 - San Francisco
$867 - Marin
$750 - Alameda
$690 - Santa Cruz
$596 - Napa
$561 - Monterey
$513 - Contra Costa
$511 - Sonoma
$344 - Solano
$332 - Sacramento
What's this mean? Well, it is challenging to draw many meaningful conclusions from just two sets of statistics. While the median dollar per square foot in Monterey County looks like it still has room to grow, Monterey County doesn't have the same number of high paying jobs as other areas in the region, such as San Mateo County or Santa Clara County. One key factor favoring Monterey County is its limited housing supply, with no substantial increase anticipated soon. The limited supply holds greater sway than demand in impacting home prices, strengthening my optimistic outlook on the market. One thing I have noticed is there are still a ton of buyers purchasing homes here as second homes, with many intending to make it their primary home when they retire. Typically, these buyers possess substantial equity in their primary residences and possess the financial stability that makes them less sensitive to interest rate fluctuations.
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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