June 3rd, 2016
How will our 2016 2nd Quarter end?
As our desert weather heats up into the triple digits becoming HOT, May 2016 sales were certainly not an indicator of a HOT market. While home sales remain moderate, most price segments experienced another dip off May 2015 numbers in both the number of homes sold, as well as values throughout my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta.
Why? Good question when it is clearly a buyers’ market with relatively good inventory to select from, in addition to historically low mortgage rates, moderate demand, and in most cases motivated sellers. I do know from years of experience that election years can be volatile which we have certainly experienced this year. Buyers seem to be cautious doing more discovery prior to buying than in the past, as a sense of uncertainty is evident. Furthermore, the desert has and always will be a resort destination. Even though year round ownership has increased dramatically over the years, many owners leave the desert for the summer looking for a cooler more moderate temperature. Knowing this, inventory is also seasonal as market trend reports prove. Meaning real estate brokers and sellers are hoping buyers smarten up, and take advantage of many deals in the market. In most cases sellers have become aware the soft market, and in order to sell their properties, they must be aggressively priced or they fall into the category of others, sitting unsold. For more details on sales numbers Click Here
If you’re a seller or someone thinking of selling, be mindful of timing and season based on the specific area of your home, which can be directly affected by seasonal market conditions. Be cognoscente of the level of professionalism and sales track record the agent and brokerage you choose, posing a direct reflection on overall results you will achieve. Today and into next season, be smart and be aggressive with your pricing, and the likelihood is your home will sell is a reasonable period of time, and likely for more than it will if it sits unsold long term. Homes sitting unsold for long periods of time (usually over-priced) devalue the property to a point the seller could have netted more by pricing aggressively from the beginning. I’ve seen this happen many times in a buyers’ market.
Finally, I’ve been meeting with quite a few new prospects (sellers) who are unhappy with the fact their home has not sold, and they’re looking for a new aggressive agent. I find it interesting that one of the first questions some of them ask; “How much commission do you charge? Can you sell my home for 5% instead of 6%? My answers to their question; How important is it to you to get your home sold for the highest price possible? Wouldn’t it make sense to focus on hiring an agent you feel highly confident and comfortable that agent has the ability, professionalism, and negotiating skills, and desire to protect your equity and net you more? The fact is in almost every case; I can ultimately net a seller quite a bit more than the 1% they think they would save by a reduced commission. Furthermore, in the grand scheme of things the 1% is usually chump change based on the value of their home. Trust me hire a professional that’s not afraid of telling you the truth, and you will save in the long run.
I hope you have found this update informational, and useful. Please feel free to reach out to me if you have questions. Whether buying or selling, Dave Kibbey & Associates is here to provide you with only the highest level of service and professionalism. Let’s see what this summer brings, until next month stay cool!