Looking back to 2019, the year in real estate proved to be a near replica of 2018. Virtually the same number of transactions, with 2223 escrows closed, but they sold at the blistering pace of 53 days on market average, ten days lower than 2018. The median price rose again, scampering up 6% to $785,000. This push was largely due to an over 20% year over year sales increase at the $750,000 to $1,500,000 price point.
We start 2020 with less than a month’s inventory at the below $750,000 price point, ensuring heavy competition among first time buyers. Mortgage rates are tumbling in the first quarter as a result of alarming news headlines both over political challenges and health pandemic scares. After three rate cuts in 2019, the Fed may be reluctant to cut further, but their willingness to do so if necessity dictates, should bode well for buyers, as well as anyone looking to refinance or take out money for home improvements. The SALT deduction cap has not served as a significant deterrent to home ownership in our market, as the statewide housing shortage, is still felt acutely in our community.
Changes at the state level in how accessory dwelling units will be approved are still being sorted out both in Sacramento and at the local level. Properties with lot sizes and configurations that work well for ADUs will likely become popular sellers over the next few years, both for families with multi-generational members, as well as investors looking to maximize their investment return potential.
The Conejo Valley itself continues to be a highly desirable community, and with a negligible number of new construction options available, our resale market is expected to continue to see increasing prices, growing at roughly the same rate as last year. The inventory crunch at the lower end of the market shows no sign of easing, and the pace of sales will remain brisk at lower price levels.
For details on how to help you in your home ownership goals in 2020, whether buying or selling, contact us today!
Let BLG be your trusted agent and advisor for buying, selling or investing in Conejo Valley real estate.