Summer 2018 Real Estate Market Update • Simi Moorpark Conejo Valley
You're watching the Summer 2018 Real Estate Market Update • Simi Moorpark Conejo Valley. Summer is here and things are a changin! PRICES Median Price ... ("The Times They Are A-Changin'" by Bob Dylan)
♪ And you better start swimmin' or you're sink like a stone ♪ ♪ Oh the times they are a changin'. ♪ (upbeat electronic music) - You might be wondering why we're standing in a pool right now. - Because it's 117 degrees outside and Trevor made us do the market update outside. (upbeat electronic music) - It seems like things in the real estate market are changing a little bit right now. What's going on? - Well we kind of saw it about a month ago, things starting to change. We put a few listings on the market, there's 1.9 months of inventory last month. Currently there's 2.3 months of inventory. - That's about 20 percent more inventory than last month, which means that the market's starting to slow down maybe just a little bit. A month or two ago you'd put a home on the market, a home that was priced right and it would see how quickly? - Sometimes we'd get offers two hours into the open house. And now we're seeing things sitting a little bit longer. It's good news for buyers. Sometimes you only had like a split second to think about making a purchase on that home. Now you can kind of shop a little bit. - The bottom line is you'll have a better shot at getting a home right now because there's less people fighting for the same house.
- We're still getting good prices for homes, it's just not the feeding frenzy we saw a few months ago. - If you're a seller it's still a great time, 2.3 months of inventory is not very much inventory. And interest rates are still good. Where are interest rates, Lelia? - Interest rates are still at like four-and-a-half percent which is still a great rate. - Yeah and if you look back historically when interest rates were double and triple this, literally you payment would be double what it is now for the exact same house. So affordability is still fantastic. - How does affordability compare now to what we were looking at in 2006 when we were at the peak of the market before? - Well back in 2006, with interest rates higher, you were having to spend 25 percent of your income to buy the average priced home. Now in the current market, it only takes 17 percent of your income to buy the median home in this market. Homes are way more affordable now than they were in 2006. They're also way more affordable now than they were in the period of 1985 to 2000. So it's still a great time to buy a house. - There's something that we have that we can actually help you as a buyer, we have a Keller Mortgage program. And we're seeing this be greatly beneficial for many of our clients. - And to give you a little bit of perspective.
On a $500,000 home that's going to save you about $5,000 in closing costs. And they credit you $1,000 once you close escrow. So it's a win-win. How many homes are there currently on the market like if we were going out to shop, how many can I choose from? - A month ago there were 805 homes in our market which is Simi, Moorpork and the Canejo Valley. Now there's only 713 active homes listed on the market. So there are actually less homes that are taking a little bit longer to sell. We know interest rates are slowing going up. By the end of the year it's expected they'll be around five to 5.1 percent. What is that doing to home prices? Are home prices stabilizing or going down? What's going on? Last year, home prices were about 681. - That was the median price? - That was the median price. This year, 725. And which is up about six-and-a-half percent from a year ago. So homes are still doing that steady climb. - Yeah, so as of last month, $725,000 was the median price. Lelia what does that mean in terms of when people should buy homes. Should they buy now or should they wait? - Well here's the question I would ask.
Can you save faster than homes are going up in price? And interest rates going up? If you can't then I would be looking at it right now and making that call. - If we can help you buy or sell a home in this changing market, we'd love to help you, give us a call. - If you'd like to know more about the Keller Mortgage program, how that can help you as a buyer and actually as a seller, we'd love to discuss that with you. Enjoy you're summer. (upbeat music) (fireworks exploding) - You got any insight on that? (sirens blaring) - I got insight on the sirens going by. - Lots of words, way to rambling. She doesn't like being corrected on camera. - Corrected, do I need to be be corrected? - Yes cause this is going to be too long, people will go, boring and they'll turn it off. And speak. - I'm not a dog. Speak, woof, woof.