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Tips for Finding Homes for Sale in Menlo Park, California

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The Menlo Park, CA, real estate market is competitive. With the social distancing measures of the pandemic and more tech workers working at home, single family homes in the Bay Area have been very popular. People are spending more time at home and want more space for work, home-based learning and leisure. If you are looking to buy a new construction home in Menlo Park, you may find that there are many buyers for the listings available.

Here are some tips for having a successful transaction:

Put down the highest down payment you can afford. A higher down payment signals to the seller that you are serious and can afford the home, which could help sway the offer in your favor if there are multiple bids.

If you already own your own home, you may have a gained equity that you can use to make a larger down payment. Homes for sale in Menlo Park, CA, typically have high equity. According to the CoreLogic Homeowner Equity Insights report, homeowner equity has risen 31.1% over the past year. In California, the increase is estimated at $118,700.

Another benefit for existing homeowners looking to upgrade is Proposition 19, which allows them to keep their previous property tax levels when they move to new homes.

Take advantage of low interest rates. According to the National Association of Realtors’ chief economist Lawrence Yun, interest rates are expected to rise to 3.5% on a 30-year fixed mortgage. Now is the time to buy if you wish to take advantage of historically low rates.

Although the demand is not expected to be as high as it was earlier this year, there is still a lot of demand for single-family houses for sale in Menlo Park, CA. The pandemic has not caused workers or jobs to leave the Bay Area. Companies like Facebook and Google are investing in new office space signaling a return to the office for many. However, many workers have an increased expectation for at least some remote work and people continue to spend their leisure time closer to home than in the pre-pandemic world. Menlo Park, CA, real estate is still considered a good investment as sellers’ market conditions are expected to remain for the foreseeable future.

To succeed as a buyer in today’s market, it’s important to understand which market trends will have the greatest impact on your home search. There are two factors every buyer should keep their eyes on: Going forward, the conditions buyers face are primarily dependent on two things: mortgage rates and housing supply.

Here’s a look at each one.

Mortgage Rates Projected To Rise in 2022

As a buyer, your interest rate directly impacts how much you’ll pay on your monthly mortgage when you purchase a home. Rates are beginning to rise, and experts forecast they’ll continue going up in 2022 (see graph below):

As the graph shows, mortgage rates are expected to climb next year. But they’re still low when you compare to where they were just a few years ago. That presents today’s buyers with some motivation to lock in a low mortgage rate before they climb higher.

More Homes Are Expected To Be Available This Season

The other market condition buyers need to monitor is the number of homes available for sale today. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows the current supply of inventory sits at just 2.4-months. To put that into perspective, a 6-month supply is ideal for a balanced market where there are enough homes to meet buyer demand.

However, there may be good news for buyers who are waiting for more options. A recent realtor.com survey shows more sellers are planning to list their homes this winter, meaning more choices will likely be available soon.

What Does That Mean for You?

Even if your options improve some this season, it won’t significantly shift market conditions overnight. According to NAR, many more listings need to be available to move closer to a more neutral market:

“Given the average monthly demand . . . , 3.55 million homes should be on the market to meet a level of inventory equal to six months of demand, implying a shortage of homes for sale of 2.24 million.”

So remember, even with more homes expected to come to market this season, competition among buyers will remain fierce as there still won’t be enough homes for sale to meet the current demand. That means you’ll need to act quickly when you’re ready to make an offer.

Bottom Line Get a real estate agent.

If you’re planning on buying a home this winter, more options are welcome news, but it doesn’t mean you should slow down. Let’s connect today so you have an expert on your side to help act as quickly as possible when the right home for you hits the market. Real estate agents can help you find the right property, arrange showings, negotiate on your behalf and help you make a successful offer.

Aria Vatankhah
Founder of Milad Real Estate
Real Estate Broker/Attorney at Law.
"Our focus is on YOU, to help you achieve your real estate goals."


Phone: 650-799-8168
Fax: 650-391-9615
Email: aria@miladrealestate.com

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