Should you put your house on the market today?
The answer is absolutely yes. The market definitely favors sellers right now. If you’ve been waiting for an opportunity to list your home, I strongly advise you to consider the market we’re currently in.
Why? Interest rates are projected to rise. When this happens, your house is less affordable for buyers, which can negatively affect you as a seller.
In today’s market, we have a very interesting situation. Interest rates just went up, and buyers are under pressure to buy a property quickly before they get priced out of the market. We also have some of the lowest inventory that we’ve had in a very long time.
If we look back over the last year or so, inventory levels topped out at 55,000 homes on the market in January 2017. If you’ve been keeping up with the real estate market over the last five years, you’ll know that inventory has been extremely low. As a result, we’ve been in a seller’s market. There are simply fewer homes on the market than there are buyers.
Since everyone is going after the same few homes, there are a lot of overbids causing appreciation in the marketplace.
In January of 2017, there were 55,000 active listings for all of Southern California. Inventory continued to drop over the course of 2017, and now there are only about 35,000 homes on the market.
You have the opportunity to get some very favorable terms by selling your property. In addition to a great price, you can negotiate for things like rent backs and contingencies because buyers simply don’t have other options.
I strongly suggest that you use this market to your advantage. This is the perfect time to sell.
If you’re a buyer, you need to be ready to pounce on the right property. With interest rates going up, you don’t want to get priced out of the marketplace.
If you have any other questions about navigating this market, give me a call or send me an email. I would be happy to help you!