Calm before the storm? Many sellers hope so….
I hope you all had a wonderful Thanksgiving, we have so much to be thankful for.
As we look forward to the 2017 year ahead, many clients and prospects ask; Dave, How’s the market? What are your thoughts for 2017? Looking at how the market performed this year, we have experienced a healthy Real Estate market. In fact, I have had a record year though in many cases it’s been a grind between buyers and sellers. Looking at various community market trends and CMAs daily, I continue to see volatility with high inventory levels in most of the higher end price segments, and marginal demand, though most homes that are positioned aggressively are selling. This is quite the balancing act in pricing, especially in the luxury market in many cases taking longer to sell due to a lack of demand. My goal is always to protect my client’s equity, at the same time get their home SOLD.
Year over year, the only price segment this November that outperformed last November in all four down valley cities (Rancho Mirage, Palm Desert, Indian Wells and La Quinta) was the $250K-$500K. Rancho Mirage and Palm Desert experienced a slight uptick in sales in the $500k-$750K segment. The $750K – $1M segment which has been slow for the past two years also experienced a slight uptick in sales, a positive adjustment for sellers in that segment.
Looking back in history, we are approaching the end of another real estate cycle. In my eye’s, any appreciation we see over the next 1-2 years will be a positive shot in the arm. It’s going to take a strong 2017 buyer market to wash away inventory levels enough to see appreciation, especially in the luxury market. As many of you have heard, mortgage rates are on the rise and should incentivize post-election buyers into making the move they have been thinking about.
It’s a great time to buy with a plethora of good homes on the market. I’ve spoken with quite a few prospects ready to buy next year, and I’m excited about helping sellers achieve their goals. In a nutshell… I believe 2017 will be a great year to buy and sell real estate.
Finally, remember that late November and December with Thanksgiving and Christmas are historically slower sales months, as people are rightfully focusing on the holidays, traveling, and special times with family and friends. Let’s hope this is the Calm before the storm, and 2017 is a banner year.
Wishing you and yours a Merry Christmas, a Wonderful Holiday Season, and a Happy New Year!
For more details on sales numbers, please click here.