Everyone loves a bargain
Especially me.
There’s nothing more satisfying than buying something of tremendous value at a tremendous discount.
(Anyone else here a Nordstrom Rack fan?!)
But just because something isn’t “on sale” doesn’t mean it isn’t a great buy.
Right now, bargains are hard to come “buy” (see what I did there?) in residential real estate, especially for first-time buyers seeking single-family homes.
As a matter of fact, it feels like deals don’t exist at all right now…and that’s discouraging.
However, today is still a great time to make a purchase—you just can’t expect to find a bargain or haggle with the seller.
The bottom line?
Buy what you can afford, even if that means adjusting your expectations for square footage, neighborhood, or home type.
Numbers you should know
67%
Roughly 2 out of every 3 homes sold in California last year went OVER asking, a clear indication of intense demand against minimal supply.
35.5%
First-time buyers account for more than a third of demand right now—as high as it’s been in about 10 years, which is a big reason today’s market is so competitive.
10
The average listing is on the market for less than 10 days right now—that means contingencies and low-down payments are something of a non-starter.
$1,000,000
The majority of the homes in California are selling for more than $1 million dollars right now—new building supply is low and Baby Boomers are staying in their homes longer, which hurts affordability.
0.00%
Buyers are flush with cash thanks to the pandemic (government stimulus + higher household savings rates) which is why you see almost no 0% down or ARM deals—this is significant because it means the people buying are more likely to hold for the long term.
3.84%
That’s the average rate for the benchmark 30-year fixed mortgage right now, up from 3.65% in January, and 3.1% in December—rising interest rates mean there’s a real cost to bear for waiting to buy.
Overcoming a setback
In life, it’s not about how many times you get knocked down—it’s about how many times you can get back up.
The same is true when it comes to buying real estate.
It STINGS to get outbid…
It HURTS to see your offer rejected…
But you can’t give up. You can’t quit on the process. You have to keep trying.
In this market, it’s those who keep putting one foot in front of the other that get what they want:
A place to call “home.”
-Shannon
310-853-0335 | ShannonShue@KW.com
Required Reading...
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Free Online Workshop TOMORROW (2/17) @ 12 P.M. PT
Tomorrow, I’m hosting another “Third Thursday” workshop to help buyers, sellers, and investors like YOU make better real estate decisions.
No real-estate-related topic is taboo during these sessions—all I ask is that you come ready to learn and ask questions.
I can’t wait to see you all tomorrow…Don’t miss out!
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