Now that we’re at the top of our real estate cycle, you may want to unlock the equity in your real estate investments.
We’ve recently learned about using a deferred sales trust in order to sell your property, unlock your equity, and even create a cash flow, all without having to reinvest in another asset (unlike what is required with a 1031).
"We’ve decided to host an upcoming workshop to delve deeper into using a deferred sales trust."
After hearing about this fantastic option for investors, we’ve decided to host an upcoming workshop to delve deeper into using a deferred sales trust. We’ll be at UTC, Seasons 52 to learn more from the experts in the business. Space is limited, so RSVP as soon as you can by clicking this link.
What’s going on in our San Diego County real estate market as we round out 2018? Let’s find out by taking a look at the year-over-year changes from November of this year versus November of 2017.
First of all, it’s been a long time since we’ve seen this kind of movement in our market.
There has been a 7.7% spike in inventory since November of last year, with 1,121 homes coming on to our market this November.
The number of pending home sales, though, saw a massive change in the opposite direction, dropping 24.7% year over year. Unsurprisingly, this means that the number of closings has also dropped. As of this November, there were 22.9% fewer closings than there were a year ago.
So, given the fact that fewer homes are selling while an increased number of properties continue to hit our market, inventory has risen by a staggering 48% year over year. The months of supply, or the number of months it would take for our market to become depleted of listings if no new homes were to be listed during that time, also rose, going up 64.3%.
Recently, I had a very eye-opening conversation with a local lender regarding the changes going on in our market right now. So as we enter this new market cycle, I thought now would be the perfect time to share some of what I learned from that conversation.
This update will be particularly useful for first-time homebuyers, because recent rate changes could very well disqualify them from being able to secure a home. Why? First-time homebuyers often need to stretch their borrowing potential to its maximum limit. When interest rates rise, as they recently have, their ability to afford a property can easily be nullified.
Thankfully, the market has responded to this. Many starter homes have been discounted by 6% to 9% to compensate for this rate change—making it possible for first-time homebuyers to re-qualify. However, this trend alone isn’t enough.
When it comes down to it, who should you trust to guide you through your real estate goals: an individual agent or a team? This has been a hotly disputed issue for some time now, which is why I’d like to offer some insight into it today.
For as long as residential real estate, as we know it, has existed, there have been individual agents. But now, real estate teams have become increasingly common in our modern market. This is putting tremendous pressure on the individual agents out there—especially those who have clung to traditional models and avoided innovation
In an attempt to retain relevance in the market, individual agents will try to scare you into thinking that big teams aren’t as personable. They claim that with so many people working for a single client, buyers and sellers will lose out on having an individualized experience. This isn’t actually the case.