Believe it or not, half of the year is already behind us, and we’ve had the best six months we’ve ever had in my 30-year career. Thank you so much for all your support. Today we’re discussing our July real estate market statistics and what’s making this year so special.
I’m going to sound like a broken record, but again, in the last month, we’ve had 50% fewer homes on the market than we had a year ago. Sales have increased about 50% from what we saw last June. That’s a massive swing between the number of properties sold and those on the market.
Interest rates are still historically low, at a little below 3% for a 30-year mortgage, which is incredible. Also, it’s not just about what you pay but the money you’re earning. By leaving your money in the bank, you’re earning almost no interest. If you buy real estate, whether it’s your home or an investment property, your money sees a much better return, plus there are tax benefits. It’s an excellent time for buyers to lock in a low rate and also a fantastic time for sellers because of the high demand and solid prices.
The effects of the pandemic have changed what people want from their houses. We’re seeing many people both upsizing and downsizing. We’re also noticing a slew of people leaving certain areas, and there’s been a shift to people wanting to live in more rural areas.
For example, if you live in Los Angeles or San Francisco, San Luis Obispo is an appealing rural area outside of the densely populated areas. People selling here may be moving to Idaho, Oregon, or other less dense areas. Plenty of people are relocating to be closer to family, too.
As we look at all these factors, people see that the market has been going up for a while and are wondering if a drop is coming. We’re selling homes at such a quicker rate than new homes are coming onto the market that there would need to be an enormous spike in inventory and a major decline in demand for this market to change much. It simply doesn’t seem to be in the cards for the foreseeable future. This is the market we’ll have for a while, and a bunch of wise people are taking advantage of it. Perhaps you should too.
If you have questions about how you might be affected by the market or how we can help you, give us a call. We’re always here to be your real estate resource.