Roadmap with Irina - September 2023

MARKET SNAPSHOT

Hi Iren,

In August 2023, the real estate market in Santa Clara County didn’t show any dramatic changes compared to the previous month. Inventory increased slightly compared to the previous month, resulting in more sales in both single-family and condo sectors, but median prices remained around the same level as the previous month. If we compare the statistics with the same time in 2022, median prices increased 12% for single-family homes and 5.5% for condos and townhouses.

Even though the median sale price hasn’t changed much since last month, the current interest rates, which are over 7%, have caused more buyers to no longer qualify for the loan amounts that they qualified for before. Buyers do their best to increase their down payments to reduce the loan amount. Some lenders reported that in August, most of the loans they issued were for amounts under $1 million. According to MLS stats, 39% homes sold in August 2023 were sold for cash. Lenders have to be creative in this environment, and in some areas, more buyers utilize buydown programs to make monthly payments more affordable. Feel free to reach out if you want to know more about these programs, and I will connect you with great lenders.

Let’s see how the real estate market develops in the coming months. With the end of the year quickly approaching, I hope it doesn’t slow down and at least remains stable.

If you are thinking about buying or selling, let’s connect, talk about your options, run some numbers, and see if this is the right time for you. Call me, I am always here for you.

Questions? Comments? Contact me!

IMPROVEMENTS TO INCREASE HOUSE VALUE

When sellers are thinking about putting their house up for sale, they want to increase the house's value and sell for the highest price. It’s important to do some key renovations, but not all improvements make sense. Some are worth the pretty penny spent, but many can be a waste of time and money, with the return not being quite as high as expected. When thinking of what renovations to make to your home, consider the following improvements that could boost the value of your property.

Flooring
While carpeting may have been popular at one point, now it could seriously deter a potential buyer from putting an offer in. Hardwood floors may be a significant expense, but they’re the way to go for any flooring renovation projects. If you have the time and money, this is an investment to think about. But if hardwood is too much out of your price range, consider laminate wood flooring, which gives you a similar look at a fraction of the cost.

Exterior
When potential buyers pull up to your property and notice overgrown grass, poor landscaping, and a neglected walkway, that doesn’t give them the best first impression. The opportunity that curb appeal presents for your home is substantial. This includes everything from your front door to your roof to your garage door, which, let’s face it, could always use a fresh coat of paint.
DIY tip: Put out seasonal doormats, decorate your front door, and power wash the walkway.

Kitchen
There is a reason many consider the kitchen to be the heart of the home - it’s the room where the most time is spent. People walk in and immediately look at the kitchen to make a quick judgment. If your microwave, stove, dishwasher, countertop, or any other commonly used appliance is over ten years old, it may be time to start thinking of updating.

Popcorn ceiling
Popcorn ceiling often contains asbestos, which, as we know, is not good for health. But even if it doesn’t have asbestos, it still shows the age of the house and pushes some buyers away. Modern homes have a smooth ceiling surface, and this is exactly what buyers want nowadays.

Bathrooms
An updated or completely renovated bathroom is a huge attraction point. Light, clean, modern bathrooms with good lighting and a quiet fan add huge value to the house and peace of mind for the buyers. Don’t add too many design touches though, as they might not be appreciated.

Lighting
Consider installing ceiling lighting throughout the house. Recessed lights or one light fixture in the center of the ceiling bring an old house up to modern standards and provide more light to the house. Try to avoid ceiling fans: they add age to the house, give the buyers the impression that it will be hot in the house during the summer (even if there is an AC), and could be dangerous when in use.

Fresh paint
The smell of fresh paint gives a feeling of a new house and a new stage in the buyer’s life. With the right color, you can brighten up a dark room or make an accent on a wall or a feature of the house.

With the current market, buyers would rather pay more for an updated house than put effort into renovating an old one. Often, they don’t have extra money, time, or experience for renovating, so updating the house before the sale helps to sell the house faster and for a higher price. Making improvements to your home can be quite a commitment, but it’s important if you want to improve your home’s value on the market.

SLEEP LIKE A BABY

I am one of the lucky people who can easily fall asleep and wake up relaxed and refreshed after just 6-7 hours of sleep. If I am very tired during the day, I can fall asleep for 20 minutes and wake up ready to rock-n-roll. I can drink coffee before going to bed and still sleep tight at night.

I didn’t always have this ability before; I definitely trained myself to quickly switch to sleep mode. A long time ago, when I was in the last year of my high school, I was so nervous about my final exams that I had trouble getting to sleep. I remember once I couldn’t sleep for two nights in a row. It was exhausting! I was stressed during the day and couldn’t get any rest at night either. That’s when I realized that I had to do something about it. I didn’t know any relaxation tactics or how to meditate, so I came up with my own relaxing exercise. Every night, lying in bed, I imagined that I was flying over the Earth and looking at the beautiful landscapes underneath. I didn’t concentrate on any details; I just flew over and enjoyed the view. If any thoughts came to my mind about anything, I imagined leaving them behind. That night, it took a lot of effort to not concentrate on anything, but after about half an hour, I finally fell asleep. I remember that I was over the moon the next morning because I felt so fresh and energetic! It was my own discovery, and I was super proud of myself. I kept working on this method, and over time I mastered falling asleep quickly.

It really helped me to save my health and sanity when my kids were little, when I had work and college classes, when I was taking Caltrain to San Francisco every day and could sleep for 40 minutes to and from work, and when I was in any stressful situation. Now it takes just a few minutes to fall asleep for me. No matter what is going on during the day (hard negotiation, problems with my teenagers, a crazy amount of work, etc.), I go to bed at night, turn myself off, and have a great sleep. And if I ever wake up at night for any reason (our smoke alarm went off in the middle of the night recently), I can easily go back to sleep. I sleep with an open window, and light noises do not bother me, but recently I started using earplugs to cut off loud noises and fall asleep even faster.

And my dreams are the most exciting dreams that you can ever imagine! In my dreams, I’ve been in different historical times and places, been different people or animals, had superpowers, died a few times, traveled to the future, and did all kinds of things. It is an adventure every night! They are colorful, full of emotions and senses, and each of them is a full story with a beginning, middle, and end. My husband says that if I ever decide to write down my dreams and turn them into movie scenarios, movie studios will fight for them. Maybe my dreams are the actual reason why I fall asleep so quickly every night: I just cannot wait to see what journey I'll go on this time.

Stay healthy and well-rested!

Always yours,
Irina