With our tight inventory and ultra-low mortgage rates, it kinda feels like Tesla stock.  One minute you’re in the $800s, and the next thing you know, the same house is in the $900s!

What can buyers do?

  1. Buy location.
  2. Don’t buy crap.

Simple enough, right?

But it’s hard to accomplish both, because the best locations have the oldest homes.

Let’s narrow it down further.

If you can afford a decent location, what else can a buyer do to ensure a smart purchase?

Buy a newer home, and/or buy a one-story home.

Newer: Homes built in the last 15 years typically have modern floor plans with a large open great room and lots of windows that allow for ample natural light.  When you go to sell it someday, it will still be a desirable home without a load of upgrading or maintenance costs to you.

One-Story: Boomers aging in place guarantee that the scant supply of one-story homes will stay tight, and those that do leak onto the open market will be hotly contested.

Here’s a good example.

This sold for $850,000 two years ago, and after a complete remodel it goes on the market for $1,149,000…..and they get multiple offers.  Those who thought they could still buy a nice house in Old La Costa in the $800,000s are really scratching their heads now!  But it had the good location, and the sellers added the new look to clinch a nice boost in value.

If you want to stick with a newer house and/or a single-story house, what are your chances?

Price Range
# Listings
# Built Since 2005
# One-Story
# One-Story Built Since 2005
0 – $1M
28
5
6
0
$1M – $2M
184
45
42
6
$2M – $3M
163
42
54
8
$3M+
266
100
79
24

Buying a newer home or a single-story really looks daunting now, but if you can pull it off, you got it made!

Insisting on a newer home and/or a one-story home will give you maximum assurance that you’ve made a smart buy that will appreciate better than the rest. We can add a few older homes that have been thoroughly remodeled, but they probably still have a floor plan cut up into smaller rooms with low ceilings.

Get Good Help!

author avatar
Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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