Can a home really DOUBLE in value here in Scotts Valley in less than 2 years?
Consider this… A 4 bedroom, 3 bath single-family home with 1,839sf on Grace Way just closed (16 DOM) yesterday at $1,033,000 after the same house closed at $935,000 just last year on August 28th, 2015 (14 DOM). A jump in price of $98,000 for that house. Pretty good appreciation and investment, right?
DOM = days on market
The home, which was beautifully remodeled and on a great street with a 9,888sf lot, actually sold and closed in early 2015 for $525,000 when it was in need of updating in just 9 days.
That means that the home almost doubled in value in less than 2 years, after updating it of course, and each time sold within days of going on the market, and each time over-asking price. And I have seen that home both before and after the remodel when they were on the market as I had buyers for it, and whomever did that remodel did a great job because it turned out beautiful.
RATES SHOOT UPWARDS
Mortgage interest rates have spiked up about 1% since the Elections and are sitting at around 4.25%-4.5% for a 30 year fixed rate mortgage.
“The primary cause of this is the sale of mortgage bonds,” said Tai Boutell of Santa Cruz Home Finance. “When investors are concerned about inflation, they tend to sell bonds, and that drives rates up. The new administration’s economic policies are viewed, by some, as inflationary.”
Tai, as well as I, expect rates to stay close to where they are right now with a slight fluctuation in rates depending on the economy and world markets. Although, don’t be surprised if you see them come down a bit, but I do not see them coming down that much for the time being if they do.
What this means is that the same $800,000 mortgage just went up by about $461 per month with a 1% increase in rates.
Happy Selling, Happy Buying, and Happy Holidays!
REALTOR® since 1986
BRE # 00921165
American Dream Realty in SV
5522 Scotts Valley Drive
Scotts Valley, CA. 95066
831-252-3959 Direct Line
Robert Aldana is a 30+ year licensed real estate veteran with American Dream Realty in Scotts Valley, and also a long-term resident and homeowner here in town. He is the founder of MyScottsValley.com and the popular local news and events page at Facebook.com/MyScottsValley.
Robert was also a nationally syndicated real estate journalist and was a highly sought after interviewee on the topic of real estate by local, national and even international media, in addition to appearing on HGTV and local NBC’s “Best of the Bay”.