Buying a home is part of the American dream and can be a good investment. This is particularly true in this recovering market, where homes for sale in the Central Valley have already risen in price by an average of up to 60 percent in the past two years.
The Facts on Prices
The cities where San Joaquin Valley Homes builds are showing strong fundamentals in the housing market. Check out these hard real-life numbers compiled by real estate authority Zillow.
In Hanford, median home values have risen by 3.4 percent in the past year to $163,200. The forecast for the coming year is a 2.9 percent rise.
Lemoore shows a 2.5 percent change to a median $179,600 with a predicted increase of 3.2 percent.
Visalia‘s values have spiked by 7.6 percent to a median $190,200. Prices there are predicted to grow by 6.6 percent.
Tulare‘s values have also jumped by 9.7 percent to a median $156,900. Next year’s increase is forecast at 7.3 percent.
Corcoran shows the biggest jumps of all at 11.4 percent to $110,500. Predictions for next year are at a more modest although still respectable 5.9 percent.
Based on these numbers, your property purchase should increase in value, which is the hallmark of any good investment.
Interest rates, which affect monthly mortgage payments, are still near historic lows, which makes homes more affordable. According to Bankrate.com, the national average Annual Percentage Rate, or APR, for a 30-year fixed mortgage is 4.14 percent. In Visalia, the APR ranges from 4.03 to 4.43 percent, making your monthly payments more affordable.
Equity and Savings
It’s a well-worn truism that the rent you pay is money you throw away. You may pay the same amount or more with a mortgage but every penny builds equity. Stick with it long enough and eventually, you won’t owe any payments on the place in which you live. In addition, your mortgage interest, which initially forms the biggest part of your monthly payment, is tax-deductible. And so are your property taxes.
Preserving Your Investment
If you’re like the average Californian, you’ll most likely stay in your new home for about six years. When it comes time to sell, you want the biggest return on your investment that you can get. This affects what options you choose and changes you make to your new home. While your own personal taste and family needs should determine the look and feel of your property, you want to consider how your decisions affect resale value.
For example, it’s likely that the drought or at least drier conditions will be part of the California landscape for the future. Avoid water-intensive features like lawns, fountains, pools, and English roses, which could turn off potential buyers. Stick with native plants or succulents and low maintenance hardscapes like patios and decks.
You may adore dramatic black tile bathrooms, aqua carpeting and bright red kitchen refrigerators. But almost nobody else will. So turn down these highly personal eye-catchers in favor of neutral walls, flooring and appliances, which appeal to a broader base. Model home interiors are good indicators of what buyers want, if only because they prompted you to buy your house.
If you want to look at some good investments first hand, contact us and schedule a tour of one of our developments.