Good sales volume… though inventory continues to control a buyers’ market. What will happen in 2016?
Depending on who you talk to, some say the market is bad, others say the market is doing well. This usually depends on what that individual’s sales volume or exposure to the business is. The fact is the real estate market is certainly not bad, as sales numbers and values are up dramatically since the low point a few years ago. As I’ve mentioned in previous updates, inventory has outpaced demand pushing sales volume down year over year. January is not always a good month to measure momentum as many of the year end closings escrows (homes SOLD) went under contract in December or pervious months and get pushed into the following year. Knowing this January was somewhat of a mixed bag if you will, consistent with most of the buyers’ market months throughout 2015 overall with one good exception, values in most price segments with a few exceptions were up slightly year over year. I believe the exceptions were sellers and agents setting their expectations too high, causing inventory to sit unsold for a longer period of time.
I believe 2016 will be a strong year, with a plethora of value priced properties, and buyers in the know about both a buyers’ market and their ability to borrow money at super great mortgage rates. Mortgages are finally easier to get these days, with lenders seemingly more aggressive with what packages they offer, not to mention quite a few stated loan packages investors are offering again. It’s really the perfect storm for both buyers and sellers, especially sellers who plan to buy another home after their home has sold.
2015 was a stellar year for Dave Kibbey & Associates in both sales and listing volume. January 2016 started off very strong for Dave Kibbey & Associates with 12 new listings totaling just under $15 Million with a total current listing volume of $24.2 Million. The luxury market continues to experience good movement in most cases outpacing previous year sales, and I expect 2016 to be another good year. The fact is sellers must be cognizant of the volatile market we are experiencing, in other words realistic with their expectations and the likelihood is they will sell. Set their expectations too high and their home will likely sit unsold. For more information, Log-On to www.DesertEstateHomes.com or call me direct at 760.774.0105.
I hope you found this information helpful in understanding what’s happening today. If you have thoughts you would like to share, or have any questions, I welcome the opportunity to speak with you. Please click here for specific sales and values numbers for all four cities.
For now, get out and enjoy the beauty our beautiful desert offers.
All the best to you throughout 2016