Posts Tagged ‘sell your home’

Why NOW is the Time to Sell Your Home

Tuesday, October 17th, 2017

Many people have been on the fence about selling this past year, due to the fact that inventory is low and they are concerned they may not find replacement housing right away – I personally have been assisting multiple sellers with such concerns. That of course keeps the inventory stagnant and prices high – a perpetual Catch-22. However, there are some conditions that make the market right now the BEST time for sellers to sell…so if you are considering selling, consider the following:

Inventory is still low and prices high. Normally at this time we should see a 6 month inventory supply, but there is only a 4.2 month supply on the market according to the National Association of Realtors (this number has even dropped since this time last year). Although we have seen homes dropping prices quite often in the last few months here in San Diego County, as well as longer market times, it is still a great time to get the best price for the sale of your home as long as you are realistic. Homes that are not priced far above comparable value and offer positive qualities can still sell at strong (higher than average) prices. But this may not be the case as we head toward the end of the year and into the next year, depending on several factors.

Buyer Demand is Higher. Compared to this time last year, buyer demand for homes is higher. Historically low interest rates and sustained job creation fuel the demand, but inventory levels prevent many from finding the right home. How long these buyers will remain in the market is hard to say, but many have decided to rent because they could not find homes, thus taking them off the market for at least a year in most cases.

Natural Disasters Will Help Fuel Buyer Demand. Due to the recent wave of hurricanes in the south many homeowners have been displaced and may soon join the ranks of buyers in other areas, making the demand even higher, OR they could become renters and take rental inventory off many markets – causing purchases to become the only option for many looking for places to live. There is a possibility this could push prices up in some areas.

Proposed Tax Changes Could Effect Demand. There are several proposed tax changes that could effect the buyer demand levels, including changes to real estate deductions. If this happens there is the possibility that sellers may elect to stay rather than move up (to save money), OR buyers may decide to rent to avoid higher tax bills. This remains to be seen but it is something to consider.

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If you are considering selling it is important to get an idea of what is going on in your specific market area. Talk to a real estate area professional and crunch the numbers. As always, the real estate market will fluctuate with the ebb and flow of many factors, but if you want to get a high price for your home now is a great time to do your research and prepare to sell.

 

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Should You Wait Until 2014 to Buy or Sell?

Tuesday, September 3rd, 2013

Many people have been asking lately whether they should buy or sell now, or wait until 2014 to do so, and this is a great question. While none of us have a crystal ball there are indicators of the near future in real estate, so let’s have a look at some things that might provide clarity to your question.

Inventory. The last several years have seen historically low inventory levels in many markets, including here in San Diego. In the last 6 months or so we have seen increases, but heading into the end of the year and holiday season – a time typically proven to have slower inventory – it is not likely that inventory will increase drastically until the Spring. This may or may not be bad news for buyers and sellers. There is always someone who needs a home, and there are usually some homes to purchase, so this really depends on specifically what one is looking for as a buyer, and what appeal a seller’s home has to the buyer pool. It is still considered a “selling” market, so if you are a buyer you must really study the particular market(s) upon which you are focusing, in order to develop a plan. It could be a great time to buy or sell, if you do your homework.

Interest rates. We all know that over the last several months interest rates have risen. Many predict that they will continue to rise as we head into 2014, but no one really knows. Too much of an increase could hurt the housing market, which is still in the early stages of recovering. At the same time, many lenders are still tightening the reins on loan approvals, and there is legislation proposed that could eliminate Fannie and Freddie, which could effect the markets and possibly interest rates. Many savvy market watchers advise buying or selling before the year ends, but you have to research your individual market(s) to make the right decision – hire a knowledgeable real estate agent to help you.

Prices. Prices have been increasing now for several months, but will they continue to do so in 2014? There is much speculation on this, but I have held true to the opinion that prices will start to level out. I do not believe we will see increases continue far into the new year. Rather, I think we will see slower, “normal” growth of single digit percentage points year over year. I think the crazy multiple offer situations will die down with the market stabilization. Prices will also be effected by interest rates and the ability to obtain a loan. If rates go up some buyers may not be able to afford what they once could, meaning sellers may have to accept lower offers in order to sell. Only time will tell, but even though we see signs in some areas, these things are not happening quite yet.

Loan eligibility. Many lenders are still making it tough to qualify for loans, and there are murmurings that this will only get more difficult with rising rates and a stabilization of home prices, which could lead to higher distressed inventory levels. The increased market prices have helped many homeowners get out from being “under water” (owing more on their homes than the homes are worth), allowing them to finally sell their homes and get out – but with a slow down in price increases there are many more who won’t make it there. Lenders are still scared of future defaults after the last market crash, and loan applications are scrutinized heavily. Loan eligibility depends on many factors, so if you work with a skilled mortgage professional he or she can help you get to the point where you are most eligible.

The real estate market is constantly fluctuating, and as long as that is true there will continue to be many predictions. My advice is to take them lightly and really research your specific market(s). You should consult professionals who can help you – local real estate agents and mortgage people – as they know their local markets better than any economist who can spew national data and figures. Whether it is the right time to buy now, or wait until the new year, will depend on local industry knowledge and keeping your pulse on the market…good luck!

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CA Real Estate Market News: Great Time for Sellers!

Tuesday, June 5th, 2012

If you are a buyer in California, especially in the San Diego area, you likely have noticed that many properties are going quickly once they are listed, oftentimes with multiple offers. It is a great time to buy, and and also can be a terrific time to sell if you have an experienced real estate agent on your side. Check out this interesting infographic from the California Association of Realtors:

 

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