Monterey Peninsula Real Estate Summer 2020
As we approach summer, we reflect on what turned out to be a productive spring for Monterey Peninsula real estate despite the virus and socioeconomic conditions nationwide. Interest rates remained low and we experienced many buyers coming in from the Silicon Valley to seek refuge in our beautiful community. Many people with ties to the Monterey Peninsula have sold their homes in our feeder markets and are renting or staying with family locally until they find something to purchase. Our market is healthy – we would like to see more listings and we haven’t noticed a general decline in local prices, but we are seeing some price reductions and buyers and sellers are negotiating. Heading into summer we have some thoughts on local market conditions.
Buyers
Interest rates are great, but the importance of working with a local, experienced, and informed lender is paramount to your buying success. Good listing agents are not just looking at a pre-approval letter and assuming you will qualify. They want to know where your loan is coming from, how it is structured, and how your lender intends to close. They can communicate with your lender directly to hear first hand how confident your lender is in your loan file. In a scenario where you are competing against another buyer at the same purchase price, but you have a local lender with a great reputation and the other buyer is using Rocket Mortgage or an out of state lender, you will have the upper hand. Just as our real estate process has experienced changes, financing conditions have changed and the lender you work with needs to be on the cutting edge of what is going on so that whether you are a VA, FHA, conforming, or jumbo buyer, you are informed and ready to close on the purchase. We are noticing buyers in competitive situations, and if you are considering buying in the summer, I would advise making sure your team is in place. Be sure to – have a great agent, local lender, local insurance rep, financial advisor or accountant, contractor, and inspectors.
Sellers
If you haven’t already, check our blog on how owner occupied homes are shown. We are anticipating a strong interest from summer buyers consistent with our spring activity, so for those considering selling in summer, it’s a great time to review some of the steps involved with the selling process with your agent, keep current on your neighborhood real estate activity, and make a plan. Talk with your agent about how they intend to market the listing if shelter in place is still in tact, how to best prepare for showings and what steps to take for pre-listing preparation. The buyers are here, they are qualified, and they are looking!