Real Estate Riches: The Colorful Secret to Boosting Your Home’s Value!

Welcome to the colorful world of real estate, where the tiniest details can turn heads and open wallets! In the game of selling your home, even the shade of your front door can make or break a deal. Brace yourselves because, according to a Zillow survey from 2021, we’re about to dive into a rainbow of possibilities!

Let’s start with the front-runner in the door derby: slate blue. Picture a dreamy, chalky light blue-gray that’s like a breath of fresh air for your entryway. Actual and prospective buyers alike couldn’t get enough of this hue, giving homes with slate blue front doors top marks. They were more likely to swoon over these abodes and were willing to cough up an extra $1,537 on average to call it their own. Talk about painting the town (or your front door) blue!

But hold onto your paintbrushes because here comes the big kahuna: black. This high-contrast color is the epitome of sophistication and drama. Buyers were practically falling over themselves to shell out an average of $6,449 more for homes flaunting a bold black front door. However, like a double-edged sword, black proved to be a bit polarizing, with some folks finding it a tad too imposing for their taste. But hey, fortune favors the bold, right? If you’re feeling daring, black might be your ticket to a hefty payday.

Now, onto the not-so-rosy news: pale pink. While we’re all for embracing your inner Elle Woods, it seems that some buyers weren’t quite ready to bend and snap for homes with a pale pink front door. Described as “kind of shabby looking” by some survey participants, this delicate hue caused wallets to snap shut, with buyers willing to cough up a whopping $6,516 less on average. Looks like pink might be better suited for Barbie’s home than real estate listings.

And then there’s cement gray, the color that left buyers feeling, well, a bit meh. While not as divisive as some of its bolder counterparts, cement gray failed to make a lasting impression. Buyers showed it the door, offering up $1,236 less on average for homes adorned with this lackluster hue. Looks like cement gray might be better suited for, well, cement.

But fear not, homeowners, for there’s hope on the horizon! While the color of your front door may not be the be-all and end-all of your home’s sale price, it’s clear that a strategic splash of paint could pad your pockets. So, before we stick that “For Sale” sign in your front yard, consider giving your front door a fresh coat of paint. And hey, if you’re feeling overwhelmed by the kaleidoscope of choices, why not enlist our help? After all, it never hurts to have a pro in your corner when it comes to selling your home. Happy painting, folks!

Drew and Christine Morgan are experienced REALTORS and NOTARY PUBLIC in Belmont, CA. They have assisted buyers and sellers in their community for over 30 years. Drew and Christine have received the coveted Diamond award and ranked among the top 50 agents nationwide and the top 3 in Northern California by RE/MAX. To contact them, please call (650) 508.1441 or email info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook and on Twitter.

This article provides educational information and is intended for informational purposes only. It should not be considered as real estate, tax, insurance, or legal advice, and it cannot replace advice tailored to your specific situation. It’s always best to seek guidance from a professional who is familiar with your scenario.

BROKER | MANAGER | NOTARY

Maximizing Your Real Estate Investment: Unlocking $1.5 Million in Untaxed Gain

If you’ve been residing in your Bay Area home for over five years, chances are you’ve already surpassed the $500,000 capital gains abatement threshold.

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“Unveiling Housing Trends: Navigating New Listings Decline and Market Fluctuations”

We recently published an article titled “Navigating Bay Area Real Estate: Balancing Wealth Optimization and Limited Data Amidst Shifting Market Dynamics” that sparked significant reader inquiries seeking clarity. Within this piece, we delved into the year-over-year assessment of home values for June, a customary method to analyze housing trends.

However, exploring micro trends can prove beneficial during market volatility. This involves observing month-to-month changes. The challenge in doing so is the presence of seasonal fluctuations in the real estate market. The trends we compiled for San Mateo County and our residing city, Belmont, illustrate a gradual price recovery compared to the preceding article, where annual values had receded in quarters Q2-Q4 of 2022.

San Mateo County 2023

Though yet to reach the peak levels of 2022, at least for now, home values appear to have stabilized and are maintaining, if not gently appreciating.

Belmont 2023

We exemplify this by presenting an illustrative graph generated by Fred®, utilizing the Case-Shiller® data methodology linked here. While this data trails the market by three months, it remains valuable for investors analyzing value patterns. The most recent trend depicted suggests we may have surpassed the market trough and are trending upwards.

Opting for gradual growth is preferable due to its sustainability. The graph we provided indicates growth is so gradual that any economic shift could easily reverse the trajectory.

The market correction following the hyper-growth observed in Q1 of 2002—driven by imminent interest rate hikes—seems to have subsided. The question now is the duration it will take for buyers and sellers to adjust and realize that the era of sub-3% loans is unlikely to return, prompting them to proceed with their life plans.

Sales in the Bay Area have declined by 30%, a result of a similar 30% drop in available new listings.

Presently, prevailing market dynamics impact our housing sector, with both sellers and buyers hesitating due to current interest rates, despite their historical below-average nature.

A further incongruous position we have today is the dichotomy between sellers awaiting price rebounds and buyers finding that prices are already too steep.

According to a recent survey by Fannie Mae, the nation’s primary purchaser of secondary market loans, 82% of buyers believe it’s an inopportune time to purchase a home.

The query remains: When will one of these groups move into action?

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 30 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook and on Twitter.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax, insurance or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew Morgan—Broker Associate 01124318 | Christine Morgan—Salesperson 01174047

Co-Owners of Morganhomes, Inc. Licensed under RE/MAX Star Properties 01811140

Navigating Bay Area Real Estate: Balancing Wealth Optimization and Limited Data Amidst Shifting Market Dynamics

Given the substantial wealth associated with owning property in the Bay Area, it’s rational for sellers to strive for enhanced investment gains and carefully assess the most opportune moment to sell their residences. However, the challenge lies in the limited data available to assist them in reaching a well-founded decision. 

Our objective is to adopt a forward-looking futurist strategy to aid individuals in making well-informed decisions while avoiding any reliance on methods like fortune-telling cards or crystal balls, or theories that stand to benefit us personally.

The stability of our real estate values has been influenced by Sellers’ reduced desire to sell their homes, a direct consequence of rising interest rates. This has maintained a state of relative equilibrium in the market compared to recent times.

However, the situation might shift in 2024. More Sellers have postponed selling their properties this year, hoping for a more favorable market next year. This presents a potential issue. 

Historical market downturns, like the one in 2007, have seen buyers holding off on purchases for years. When they eventually rejoin the market, they tend to do so simultaneously due to changing conditions that they have in common, resulting in multiple offers and price escalation—a phenomenon observed in 2012 following a housing hiatus.

Sellers could also face this challenge. Previously, when government bond purchases kept interest rates artificially low, and people refinanced at around 3%, the anticipation was that rates would rise when the bond purchases ceased. As predicted, Sellers have now refrained from refinancing and moving due to the prospect of significantly increased mortgage payments.

Given that interest rates have doubled in the past two years, Sellers lack motivation to upsize their homes, considering their mortgage payments would more than double. Property tax hikes further compound this issue. Many Sellers we’ve communicated with plan to wait until 2024 before acting.

In this scenario, if more homes come onto the market while the buyer pool remains static, it could lead to lower home prices in 2024 due to reduced competition for available homes.

Another challenge in 2024 is the presidential election year, which is historically associated with market pullbacks due to political and economic uncertainties. These uncertainties breed caution and indecision among buyers, particularly from May to November, resulting in further downward pressure on prices.

This graph illustrates the effect the highly contentious election between Hillary Clinton and Donald Trump in 2016 had on home values during those months.

Presidential Election Year Impact on San Mateo County Home Values—2016

Drawing from historical market trends, we recommend Sellers take proactive measures to address the potential influx of 2023’s home Sellers. Selling before May 2024 becomes crucial for maximizing returns ahead of the election year’s uncertain market conditions.

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA with more than 30 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook and on Twitter.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax, insurance or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew Morgan, Broker Associate 01124318 | Christine Morgan, Sales Associate—Owners of MorganHomes, Inc. Licensed under RE/MAX Star Properties, 01811140

HOUSING MARKET DIPS REMAIN IN THE MIX AS NEW LISTINGS CONTINUE TO DROP

Though the landscape may appear bleak to some, to others, doors have opened to greener pastures offering new market opportunities.

We guessed correctly that around this time, home prices would start to look more like they did a year ago than two years ago.

Looking in the rear-view mirror, home prices hit their all-time high in April of 2022 before beginning what would be a reverse of fortune for sellers over the next year.

WHERE ARE WE NOW

Most indicators remain down over last year, but not so much in the price decrease department. What has taken a hit is the inevitable drop in sellers choosing to move for fear of losing their low fixed mortgage rate.

Take Belmont, for example. The number of new listings dropped 27% YOY as compared to June 2022. 

The Inventory—or the number of homes left for sale at the end of the month dropped 56%, a strong indicator that there is still strong demand for homes.

One more home sold this month than last year, which is statistically insignificant, but it underscores that our meager inventory is moving.

The days a home is on the market is back to a more normal 12, up from eight when the bidding frenzy in Q1 of 2022 was at its peak.

The percent a seller receives of the asking price is around 105%—down from 107% a year ago, but still indicating overbidding on select homes.

The Belmont median home price is down 12.3% YOY, as some air escapes from the brief bubble in 2022.

San Mateo County fared about the same:

News listings declined 27%

Inventory dropped 30%

Sales were down 8%

The median home price came down 5%

And the time it took to sell a home increased by 50%

We still have less than one month of housing inventory in Belmont and 1.4 months in San Mateo County, which is lower than the rest of the country by about five months.

Currently, half of the homes being sold are fetching prices above the seller’s asking price, indicating the presence of multiple bids, while the other half are selling for less. Sellers are still receiving lower prices than they could have obtained a year ago during the brief bubble. However, given the rapid 14% price increase in the first three months of 2022, it is evident that there was considerable room for a market correction.

With prices rising by 14% in the first quarter of 2022, it was anticipated that a portion of the price surge would not be sustainable.

TAKE AWAY

Interest rates have increased again recently and will probably stay at these levels for the remainder of the year. That’s not helping buyers or sellers. Buyers can afford less home, or less expensive homes, and sellers don’t want to move, which puts more pressure on holding home prices at bay.

Since the local housing market heavily relies on the interplay of supply and demand, if interest rates remain high and an increase number of sellers feel compelled to sell, the growing inventory of homes for sale will intensify the pace of home price decreases.

We understand how difficult it is to try and time one’s life around the housing market—whether to move now or later and what would be optimal. Two things will impact the housing next year that we can anticipate. With the Presidential Election, we expect a repeat of diminished housing market activity as we near summer. And mortgage interest rates are expected to come down. This may entice more sellers into the market, diluting the pool of possible buyers for homes. If you are considering a move, be sure to contact us soon so that we may advise you early on as to the best time next year to sell.

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 30 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

Drew Morgan, Broker Associate 01124318 | Christine Morgan, Sales Associate 01174047

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook and on Twitter.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax, insurance or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Belmont Week in Review–December 17th 2008

NEW LISTINGS

The holidays are in full swing and you can tell by the deafening silence that Belmont’s housing activity is slower than the holiday deliveries promised by UPS. A very unscientific barometer is our phones are eerily quiet (which is not a bad thing one time of the year) but some ringing other than the Salvation Army’s bells would still be welcome—let’s not jinx anything.

The inventory of homes for sale is at 40—down considerably from just a few weeks ago. Unfortunately it’s not sales that have been driving the numbers lower but rather sellers have thrown in the towel for the year as ten homes were taken off of the market. We just closed escrow on the last two homes we will sell in 2008 and now it’s so quiet that we decided to take a week off from posting homes for sale to take a break and trade the stress of work for the equally demanding stress of preparing for entertaining the family for Christmas. Don’t get me wrong, we love the holidays but it’s non-stop entertaining 24/7 for three days around here.

Our next post about the housing picture will be our year-end wrap-up in early January where we stick our necks out and make foolhardy predictions which can only backfire in today’s economy. Nevertheless we’ll hold true to our word and re-cap last year’s predications (ugh) and try to realistically let you know where we think things are headed in 2009, as well as give the year-end results from one of the most tumultuous real estate years in history.

Stay tuned though as we'll invariably come up with a few fun posts before the year is out.

Until then, Happy Holidays!Christmas Tree

There have been only three new listings in Belmont in the past two weeks.

Debbie 1 Debbie Lane—3 Bed 2 bath 1,800 Sq. Ft. home on a 5,850 Sq. Ft. lot. LISTED for $ 998,000. This is a good solid home at a fair price and located on a small cul-de-sac on Belmont’s eastern hills exposure (than means warmer). It has a usable level rear yard and hopefully you’ll like the small pool or else you can fill it in. It last sold for $740,000 in 2003 during a lull in the market. No OPEN HOUSES listed. Listed By Deborah Mitchell Hawes, Coldwell Banker.

El Camino 820 El Camino Real—5 Bed 3 bath 1,800 Sq. Ft. home. This place has been a rental and really that’s what it should continue to be used for. It offers great tenant parking which of course is very desirable considering the home is on the El Camino. NO OPEN HOUSE LISTED. Listed By H. Craig Thorson, Red Hawk Real Estate Inc.

Yorkshire 418 Yorkshire—3 Bed 1 Bath 1,010 Sq. Ft. home on a 5,000 Sq. Ft. lot. LISTED for $ 577,900. With all of the sales in this area over $600,000 this home is priced to sell. Here’s a perfect well kept home at a discount. This is our BEST DEAL of the week. NO OPEN HOUSES LISTED. Listed By Michael A. Ames, Patriot Properties.

 

No Homes went into a pending status in the last two weeks.

 

SOLD HOMES

 

Well, sold home actually.

 

Fairway ↔1636 Fairway Drive 3 Bed 1.5 Bath 1,720 Sq. Ft. home on a 6,000 Sq. Ft. USABLE lot. LISTED for

$799,000 and sold in 33 days for $799,000. This home has potential but also needed a lot of work. Located on the site of the old golf course in Belmont and an appropriately named (and desirable) street.