Central California will march to its own drum.
California is not like the rest of the country, so it’s hard to compare California on a national level like CNN, CBS, and NBC tend to group together. Even the real estate market in the Peninsula – San Francisco, San Mateo, Palo Alto down to the Bay Area in San Jose is even more unique and hard to compare on a California level. The local housing market varies from mile to mile and location, location, location still stands strong.
The housing inventory on the MLS is relatively low, but that has been the new normal for South San Jose like Morgan Hill, Gilroy, and Hollister. The real estate market has been tough for some buyers looking to invest or purchase their first home in a lower price range. Using a local full-time agent will help point out some “pocket” listings and new constructions that are not on the MLS.
Since Intero Real Estate Services holds the market share in Hollister, our community oriented agents tend to hear about listings before they are active. Sometimes we can make successful transactions without having to go public. Seems to keep everyone happy and stress free.
New construction is booming in Morgan Hill, which is leading the trends followed by Gilroy and Hollister. While the teezer base prices of new construction are appealing, home buyers spend well over $30,000 in upgrades for some standard features. Buyers pay the price for the brand new tag, but communities went for years without new construction they greatly oblige to the prices.
Interest rates may rise in 2016, but not on a large scale originally anticipated. Leslie Appelton Young shared that it really depends on the economy at that time before we see major increases. With the Presidential Election 2016, America will just have to wait and see what is promised by the candidates. National Association of Realtors did a fantastic job stopping a “transportation” tax that would have impacted home buyers, so REALTORS had a win in 2015.
With home prices on the rise and flattening, investors are looking to buy properties to rent versus flipping. Foreclosures and short sales are few and far between, so capitalizing on distressed properties are starting to become a thing of the past.
Home values have been neutral in San Benito County but Santa Clara County still remains a seller’s market. If you have to buy a home in 2016, then it will be a great time for you to enter the real estate market. Prices are not going down anytime soon, thanks to global powerhouses like Apple, Google, Twitter, Yahoo, etc.
If you would like a home value analysis or buyer location analysis, please contact Kristen Jurevich at (831) 635-6719 or (650) 503-4110 or MoveWithKJ@gmail.com