Time to Move Up? Real Estate Information for Agoura, Oak Park, and All of the Conejo Valley

Time to Move Up? Real Estate Information for Agoura, Oak Park, and All of the Conejo Valley

Many people say they would like to get a larger house, but want to wait until the real estate market settles down. I would like to know how they will know when it is settled enough. And then I ask my favorite question, "Why?" (People who know me know I ask a lot of questions.)

Are you cramped in your current home? Want a larger yard? Maybe a room for an office? Maybe it was always just a starter home for you, and you never got around to buying the next home. If you have been in your home for the last five years or more, I believe it is a great time to take advantage of the equity you may have in your home.

According to the National Association of Realtors, the typical home seller owns their home for six years before selling. (I have been in my home for 18 years, I am obviously an anomaly.) Following this line of thought, sellers thinking of moving up in today's market bought their home in 2002. Say, for argument's sake, you purchased your home at that time for $250,000. That house now is likely worth $500,000. (Probably considerably more, but I Iike easy numbers.) It has doubled in value!! You may now have $250,000 in equity, on top of the original purchase money, to put towards the purchase of your new home.

If you are considering a move to a more expensive home, but are thinking of waiting until the market picks up, you need to look at both sides of the transaction. It may or may not make sense to wait. Consider this. The median sales price for a home in Agoura and Oak Park for the last 12 months was $836,500, the average sales price was $1,028,843 (Per CVAR Rappatoni, as of 02-09-2008, information deemed reliable, but not guaranteed.) If the market goes up 3% a year for three years (which is way below the historical average increases), that average priced home will sell for $1,123,244 in three yearsc.

Now look at the buying side. Say your move up home is now selling for $1,250,000. If the market increases that same 3% for 3 years, you will then be paying over $100,000 more for that same home! It will cost you $1,365,908! You are paying taxes and a mortgage on over $100K more than if you had bought that home today! And chances are the interest on your loan will be higher as well.

Many people who are buying and selling right now are move up buyers, using their home's equity to obtain better, larger, and more expensive homes. As a seller, you may enjoy the benefit of the past years of appreciation. As a buyer, there is a large selection of homes to choose from and interest rates are still incredibly low. It is a win win situation!

Of course, no one can predict the future in real estate or any other investment or situation. The numbers must work for you. Remember, where ever the market goes, what you get on one side of the equation, you make up on the other.

I strongly believe in clients making informed decision. If you would like to discuss YOUR opportunities in the current real estate market in Agoura, Oak Park, Westlake, and all of Ventura County, contact me today. We can run numbers, and work out different scenarios, to see if a move is the right thing for you to do. Above all, it IS about YOU!! As it should be, with any realtor.