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Displaying blog entries 11-20 of 31

Transferring your property tax to your next property

by Harold Powell

One of the main reasons that California voters passed Proposition 13 in June 1978 was to protect themselves against escalating property taxes as the value of their property increased. By establishing base year values that could not go up by more than 2% per year, Proposition 13 kept the owner's property tax increase at a manageable level.

One of the unintended effects of Proposition 13 was that it discouraged empty nesters from downsizing into a smaller residence.

To solve this problem California voters passed Proposition 60 in 1986 that permits people over 55 years of age to sell one home and buy another of equal or lesser value in the same county within two years and take their original Proposition 13 base year value with them

There are of course some eligibility requirements in place in order to  take advantage the property tax transfer which I discuss in today's update.

Current Market Trends

by Harold Powell

Today's market video answers 2 questions. What's happening with the real estate market today? Is now a good time to sell?

What can we expect in 2014?

by Harold Powell

Everyone is aware by now that we’ve experienced rapid appreciation over the past 2 years.  The question remains as to what 2014 will bring?  The other variable is just how much interest rate changes could impact 2014. Watch the video and find out just how much interest rates and the appreciation has already effected market conditions.

The Holiday Sale Secret

by Harold Powell

This time of year a lot of sellers ask me whether the fall is a good time to sell? Many sellers are not aware of the holiday secret. Most sellers make the mistake of waiting until the beginning of the year to sell, when in fact the last quarter of each year has more sales than the 1st quarter of each year. To actually see what i mean, watch this short video.

Fall truly is a great time to sell because inventory drops which means there is less competition of homes on the market. On the other hand you have serious buyers who may be relocating or they just sold their homes and need a replacement. There is also a sense of urgency with the possibility of higher interest rates.
 
Naturally, we expect inventory to increase during the spring. So if you don't want to wait for more competition of homes coming on the market then give me a call at 805-339-3516 and I can help you with your buying and selling needs.

1 million+ homes see 91% demand increase

by Harold Powell

One of the areas of the real estate market that typically takes longer to rebound is the luxury home market.  With the real estate market in it’s second full year of appreciation we can now say with certainty that the over 1 million price tag properties are selling with regularity.

In fact if you look at the quarterly chart below,  over the past 3 years we have seen a 91% increase in the number of homes selling from 3 years ago!  

One of the reasons that we have experienced a resurgence in demand for this type of housing is 25% or more increase values for the under 700,000 market. This new found equity allows has created a perfect move up sellers market. Additionally,  low interest rates continue to allow move up sellers a reasonable payment.  With rates continuing to hover around 4.5%, it appears that we can expect the 1 million plus home market to continue to see solid demand.

How to eliminate PMI

by Harold Powell

Will Rising Interest Rates Affect the Market?

by Harold Powell

Lately, I have been hearing the same question: how will rising interest rates affect the market? Interest rates have crept up in the past 30 days from a little below 4% to about 4.5% now. Generally, in the short term, rising interest rates creates a sense of urgency for buyers.  They want to avoid the possibility of paying a higher interest rate. To begin to answer that question we should look at the months supply of inventory chart.

The months supply of inventory chart tells us how fast we would deplete the current inventory if nothing new came on the market. You can see here on the far right June 2013, we have just about  1 month supply of inventory.  2 years ago we had close to 6-7 months of inventory.  A normal market for Ventura County is between 4-6 months inventory.  So the question here is what is causing the imbalance? Is it the reduction in the number of homes coming on the market or is it the number of people buying ?  Watch the video to find out.

Real Estate Price Point Increase

by Harold Powell

The change in market pricing for different price points can best be seen when you compare 2 different points in time.

The market pricing chart reflects 2 different time periods in $50,000 increments for Ventura County. The outline chart are the number of sold properties per price point from April 2011 to April 2012.  The solid green chart reflects the same thing but from April 2012 to April 2013.


As you look at the different price points there has been a significant move up in the number of homes now selling over 350,000 from the previous year. There were a greater number of sold homes under 350,000 2 years ago due to the market conditions. You can also see that in every price category over $350,000 there has been an increase in the number of homes sold. It’s almost as is the outline chart was shifted over one increment to the right.  

The graph also reflects the continuing strength in the over $600,000 price range as well.  This is helped by the fact that the move up seller has enough equity to buy that more expensive home.


This is the 2 year median for sale and the median sold properties chart for Ventura County.  The red bars reflect the change in the median asking price(for sale price) which is up 35%.   While the median sold price is now up 24% from 2 years ago.  

To find out specifically more about your property give me a call at 805-339-3516.

 

 

85% decline in Months Supply of Inventory

by Harold Powell

Everyone is asking where did all the inventory of homes go? Over the last 2 years we have seen a 61% decline in the number of properties available.


In Feb 2011 there were 5100 homes available. Feb 2013 there are 1989 homes available. That’s a net reduction  in the supply by 3,111 homes over the past 2 years.       

An even more dramatic revelation is the months supply of inventory. The months supply of inventory is the time it would take to sell all the remaining inventory based on how fast homes sell.  Monthly supply of inventory is considered a leading indicator of sales activity and the direction that the market is headed.



 As you look at the graph you can see there is an 85% decline is the months supply of inventory from  Feb 2011 to Feb 2013. In Feb 2011 there was 7.8 months of inventory.  Fast forward to Feb 2013 and see that the supply has shrunk to 1.2 months of inventory. What that means to you is that it would only take 1.2 months time to sell all the remaining inventory.

 To give you a sense of this number, a normal market should have about 4-6 months supply of inventory. When the inventory number falls to 4 or less we begin to see appreciation in pricing. The fact that this number is hovering below 2 months means that there is a lot of upward pressure on pricing at this time.

 To show you what I mean look at the chart below which shows a 32% increase(red bars) in the median asking price and a 17% increase(green bars) in the sold price over the past 2 years.

Increase your homes value by 11%

by Harold Powell

Today I wanted to take a couple minutes to show you how we can increase the perceived value of your home by as much as 11%.

It’s been said that a picture is worth a 1000 words and the difference between a good quality photo or poor quality photo can affect your property’s perceived value. As a seller, there are 2 groups that you are trying to persuade or influence in regards to the value of your home.  The other realtors and the home buyers themselves.

 

2 important facts

1. 90% of today's home buyers employ and rely on a professional realtor.

2.  Over 88% of prospective home buyers start their search on the Internet

A study was done with home buyers to see how home professional photography can effect
3 things...

Their perceived value of the home
How likely they were to visit a home
How quickly they thought the property would sell.



Results are very convincing...


1.Those who viewed the listing information accompanied by professional photography valued the property 11.5% more than just a property description.


2.When asked how likely they would visit a home with professional looking photography, 7 times as many respondents indicated that were “very likely” to visit the home vs. a home without photography.

3. Home buyer respondents also felt that the home was 3 times more likely to sell within a standard time frame vs. home with just a description.


Probably the most compelling bit of information is this graph of increase of perceived value. Take a look at this.

As you look at the top bar it you can see  those that who viewed listing information accompanied by professional photography, valued the property at an average price of $460,735, an increase of 11.5 percent or $52,896 over the average perceived price of the description-only property, $407,839.


Here are some photos taken from a 5 meg camera phone compared to the same photos taken by a professional. The question to ask yourself is which picture is more compelling value to you.

 

                                                                  

                

              


Understanding that there are 2 people groups we cater to when we showcase your property online.
1. The agents themselves who tour property online.  As an example this particular property had 237 agents tour this property online within the first day of being on the market.  vs. the 40-50 agents that came through on caravan.
2. The buyers who are looking online to purchase a house.  Its a known fact that 88% of the buyers who purchase a property are looking online.

While perceived value is not the same as what someone ultimately pays for a property, it sets the benchmark as to what this property is worth in a buyer's mind compared to other homes in the same neighborhood. First impressions often have a big impact on a buyers' decision-making process on which homes to visit and how much to offer.



To discuss ways more ways to help you increase the exposure to your property and adding market value at the same time,  please contact me at 339-3516.

Displaying blog entries 11-20 of 31

Contact Information

Photo of Harold Powell Real Estate
Harold Powell
RE/MAX Gold Coast Realtors
5720 Ralston St. Ste. 100
Ventura CA 93003
(805) 339-3516