If you’ve toyed with the idea of moving up, downsizing or just craving a change of scenery, you may want to consider selling your home ASAP.
In pockets across the country, the housing market is showing signs of change. Yes, in July we saw record high median home prices in the West. Based on the slight tick lower in August there are hints of change coming that you should be aware of if you hope to make maximum profit from the sale of your home.
Read on to find out why.
1. Homebuyers may start rethinking their decision to buy
Battle-weary homebuyers are starting to reconsider purchasing a home right now. In some areas of the country, they’ve chosen, “ever so slightly,” to rent a home while awaiting better opportunities for buyers, according to Rick Palacios, director of research for real estate research firm, John Burns.
In fact, the high home prices resulted in a 17% decrease in mortgage applications in August over this time last year. There had been an increase in early September but applications have dropped since with many economists looking toward the October jobs report.
Selma Hepp, deputy chief economist with data analyst firm Core Logic feels that “There are signs that the hottest days of the market are behind us.” She predicts an increase in housing inventory for the remainder of the year.
Yes, the market is still red-hot for home sellers, but if you’re waiting for it to get even hotter before placing your home on the market, you may be disappointed.
Take advantage of the current pool of homebuyers to get the most money for your home.
2. What will interest rates do?
Some economists are predicting rising mortgage rates throughout the remainder of 2021, cooling off the housing market. Mortgage rates in response rose across all loan types, with the benchmark 30-year fixed rate reaching its highest level since early July 2021,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
“So far, the increase in rates has come with ups and downs marked by a gradual rise over time,” Stauffer claims. As this incremental rise continues “as some experts have forecasted,” he adds, the market will cool, even if it’s just slightly.
3. You’ll have little competition from other homeowners
According to the National Association of REALTORS®, the inventory of available homes has increased to the highest number since October 2020.
“We may have turned a corner on inventory,” according to the chief economist for the National Association of Realtors. “There is some softening in the demand.”
When the inventory of homes for sale increases, expect home prices to soften. When this will happen is anyone’s guess, so keep an eye on housing market news. Or, give me a call; I am happy to share with you what we’re seeing in the market.
The bonus for you as a home seller right now is that you’ll have little competition from other sellers. A well-prepared home in a decent area can easily become the belle of the local market and receive multiple offers from qualified homebuyers.
Don’t try to time the market. By the time it turns a corner for sellers, it will be too late; you will have missed the top of the market.
4. Money, money, money
Chances are good that you’ll be surprised how much equity you have in your current home.
Last year, Los Angeles homeowners, on average, gained $150,000 in equity. Let that one sink in a minute. That figure represents a nearly 20% increase from the previous year, according to the number crunchers at Core Logic.
The summer has continued to be a hot property market but how long will it last? Give me a call to find out how much your home is worth.
For a free consultation about selling your family home in Woodland Hills, Calabasas, West Hills or the San Fernando Valley Call Janey Bishop (818)570-1144 email [email protected] or watch my videos at https://janeybishop.video/vacant-home or more videos at https://janeybishop.video/Empty-Nest-Downsizing-Playlist
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