On the way into work today, I started thinking about those old Beverly Hills Cop movies with Eddie Murphy which struck me as very odd. Then I realized I had been singing the “The heat is on…” one of the movie’s theme songs for the last day or so. Yes, the Murrieta real estate market is hot but my subconscious mind was still reeling from temperatures hitting 105-107 degrees in Murrieta and Temecula. That is crazy!
While the temperature has dropped back down today – thank you so much – the local housing market is still cooking and moving well. Any single story home reasonably priced flies into escrow. Also, the entry-level market under $350,000 is practically invisible as any home listed usually goes quickly.
While that is great news for home sellers, we are also now seeing home appraisals often coming in short of offered prices. In many cases it is very hard to get around appraisal issues depending on the type of loan and appraiser you are dealing with. In general, no appraiser goes out and tries to sabotage home values, but often buyers will value a home higher than it will appraise for. This can be a very frustrating experience for both parties, especially the sellers.
During times like this, it is important that your agent stridently challenge the appraisal and work to push up your valuation. While there is a limit on what an agent can do, it is important that they always try. A challenged appraisal is much more vetted and defended. So, if it doesn’t change, at least you know it was tested, held up, and you are getting the maximum possible sales price for your home.
Another concerning trend I see is homeowners even more aggressively leaving California for new pastures. While job and military transfers drive normal migration, there is no doubt we are seeing many people leave because of the higher taxes, gas prices, traffic, and a lower stress level environment. States like Arizona, Nevada, Texas, and Idaho seem to be the most common.
On that note, if you or anyone you know plans to move to another state - please let me help! I would love to sell their home and promise I will work exceptionally hard for them. I will also connect them with a top agent for any US city they are moving to via my broker network. I will get only the best for them!
Stefan AKA - Mr. Murrieta