January 5th, 2015
Hello and Happy New Year!
Starting off our new year is a time to reflect on all of the good we experienced last year, our misfortunes last year, and what we will do differently in 2015 to have an even better year. I know that some of you have listed and sold, others have fresh new listings and are excited about making a move sometime soon, and others who may be a bit frustrated with the fact your home has not yet sold. I have high hopes your home will be in escrow soon so you can make your move, and I will do everything in my power to fight hard to protect your equity, and get the job done as quickly as possible.
Yes… we’ve seen some significant changes in the market over the past two years, buyer confidence has increased, mortgage rates continue to remain historically low which has whet the appetite of many who needed or chose to leverage their purchase, and in some cases we’ve seen significant increase in values mainly in the low-end housing market. Additionally we continue to see more and more new housing developments pop up throughout the valley which indicates overall confidence in the market.
The fact is even with improvement in the market, and a relatively strong level of buyer confidence, the market remains volatile. We all know the Feds have to increase mortgage rates soon which is a good sign to push real buyers into making a move sooner than later to simply remain affordable in today’s market. As long as demand stays strong the market will continue to flourish. Additionally there continues to be a pent up interest in seasonal cash buyers that are both anxious and cautious… an interesting mix of mindsets. These buyers will likely buy this year, but are very value and price sensitive.
Properties selling today are either a 12 on a scale of 1-10 (in other words amazing properties), or they are clearly priced right and a great value in the eyes of a buyer. Buyers today have amazing amounts of information available at their finger tips, and the internet has more websites and public information they can study from than you can imagine. The fact is most buyers are prepared, know the market, know the comps, and have previewed photos, virtual tours, maps, and title information before they even walk through your home. In order to generate traffic and sell your home today, you MUST be a great value in the eyes of the buyer.
Finally… Season historically brings higher levels of inventory, although of serious concern today, I’m seeing huge spikes in inventory levels (see attached) which could certainly cause values to drop if buyer demand does not stay consistently strong to absorb these levels. I believe 2015 will be another stellar year in real estate, and properties that are priced well will sell. Remember… you may be selling to buy another home. If this is the case, be willing to give on the selling side and we’ll do our very best to pick up your loss on the buying side.
Wishing you positive thoughts, good health, and much prosperity in 2015. I will continue to keep you updated bi-weekly. Please do not hesitate to reach out and call if you have any questions or concerns.
Here’s to a quick sale this year!
Please click here to view current Inventory levels.