It’s been in the news. Inventory is increasing, less mortgage applications are being submitted, and homes that are believed to be well priced, are sitting on the market. We are seeing homes sit on the market for as much as three times longer than earlier this year. For many, this can appear as a scary time in real estate. Now that the highly publicized midterm elections are over, and we are deep into the holiday season, there are different ways to approach it:
1. If you are a buyer, now is the time to seriously consider buying: With inventory increasing, that means you have choices that you didn’t have before. Especially during the holidays, homes generally take a little longer. You may even be able to get a home at a discount versus buying at the beginning of the year.
2. If you are thinking of buying, think about how long you plan on living in your home: If you are thinking that this will be your forever home or not looking to sell for a while, then it may not matter what’s going on in today’s market. We sold a home that almost tripled in value from when the owners bought it 20 years ago. They experienced many real estate cycles, and still did well. For those that bought at the height of the market between 2006-2008, home values in Los Angeles have now caught up or even exceeded. The difference is interest rates are lower now, so those home owners have an opportunity to refinance, or stay the course because a third of their mortgage is now paid off. By 2038, they could be mortgage free, while the rest of us have another decade to go.
3. If you are an active seller, don’t take it off the market quite yet: With the word out that inventory has increased, that could mean that potential sellers don’t want to go on the market, meaning your home is still an option for people. Have your Realtor® discuss with you what they are doing to differentiate your home from the others that adds value. For example, is your Realtor® marketing your home in higher priced neighborhoods to show yours as an alternative?
4. If you are thinking of selling, take a second and look at the data, because you may not want to sell right now: With the market shifting, it is important to review the sales, how long it is taking, and then decide on whether to sell. It may not be the best time to sell for you.
Different strategies go with different goals. To start, speak with your financial advisers, and then to an experienced Realtor®. The market is acting funky in recent months, but that doesn’t mean you should make an uninformed and quick decision.
What have you been noticing? Let’s start the conversation!
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