If you ask anyone, worth their salt in the real estate representation profession, about when it is the best time to sell a home they will tell you it is during the 1st quarter, and beginning of the second quarter in any year. The “disclaimer”, which should be added, is dependent on the type of real estate market that exists at the time of the inquiry.
In 2017 – we are going to be in a healthy real estate market, at least for the first two quarters of the year – bringing us close to the end of the summer. This means that interest rates will remain stable. We are in an election cycle like none other we have ever seen. Both candidates are creating stress and discontent in their particular ways.
If the FED increases interest rates or starts to further constrict the lending guidelines, we will see the real estate market start to slow down and closings(homes being sold) get farther apart.
Another trend we would see if the FED increases interest rates is where home prices start to flat line and in some areas start to reduce. Affordability for home buyers would benefit with a reduction of home prices. However, an increasing of the interest rate could cause home buyers to be priced out of the market if prices did not adjust enough.
Real Estate sellers, who wanted to sell, attempting to meet their bottom line to move up, downsize, or away, will feel the pinch if interest rates move too dramatically in an upward trend as could be authorized by the FED.
OMT I should comment on has to do with real estate inventory. Another way the market could reduce, which could be most possible than the fed increasing the interest rates, is having more sellers want to sell their homes in the present market or during the 1st and 2nd quarter of next year.
For the past 18 months, the Santa Clarita valley has been experiencing low real estate inventory in the way of homes being placed onto the market for sale. This has created the perfect seller’s real estate market when combined with the low interest rates which are in play.
Home buyers are experiencing high levels of competition on every single real estate listing. Sellers, in the “right price ranges” – $350000-575000 are encountering multiple offers from prospective buyers which they are able to chose from those with the best types of financing and largest down payments.
Multiple Offers are also able to be countered in multiple counter form. Meaning that the home sellers are able to have the buyers compete for the homes they want to buy. Increasing their offering price, increasing their down payment amounts and changing(upgrading) to more appealing types of mortgage loans.
Before we take on a new real estate buyer or seller, we meet with them. We want to ensure they understand the real estate market and that they are better informed than their competition. We do this in our offices or via the telephone conferencing all parties which are going to be part of the real estate transaction.
This “time” is never wasted and is of huge benefit to every single buyer and seller in any real estate market. Sometimes the buyers which are met with are not in a position to purchase real estate. We also encounter home sellers who don’t have enough net gain to sell their home to move along to their next chapter in life. Even with those scenarios, the face to face meetings are never a waste of time for the SCVnest Realtors at REMAX and Yours Truly – Connor T. MacIvor.
This is the latest YouTube video I completed speaking about the interest rates increasing and the current Santa Clarita real estate market trends. Enjoy and please let me know when you are ready for my assistance with your real estate needs. Please, tell a friend/family or acquaintance if they need quality real estate representation.