The Ventura real estate comps are WRONG.
Wow. As a followup to the January 16th blog post on the future of real estate in 2017, there is MAJOR news: Housing inventory has FALLEN despite February being the typical month of rising inventory. This at a time when the DOW is breaking daily records, now just over $21,000. The is echoing back to 2013 when the prices of houses increased 20% in March and April alone. Sellers are setting higher prices and are getting them, even for inferior products.
Thereby, anyone considering August-November comps in their appraisals and valuations: THROW THEM AWAY! The 2016 comps are already dated. The pre-election woes and post-election shock stunned the real estate industry. That pent up housing demand has been unleashed, at a time right before the imminent raising of the Federal Reserve discount rate.
Also, despite the certainty of Federal Reserve discount rate rising, the market has held mortgage interest rates stable, possibly the result of increasing bond prices as investors seek alternatives to highly-priced stocks. Also, checkout a local lender’s take on increasing rates from OnQFinancial: David Jaffe’s Take on Rates.
Post written by Realtor Kevin Paffrath at “Meet Kevin“, the amazing real estate agent and broker serving Ventura County, including Camarillo, Ventura, Oxnard, & beyond. Writing for home buyers, sellers, investors, and anyone with an interest in real estate. Kevin thanks you for reading.