Have you been thinking about selling your California home, but aren’t sure if it’s a good time to list? Because of a combination of things going on in the national market and trends taking place in California, it’s actually an excellent time to put your home up for sale. Check out these three really big reasons why!
Federal Interest Rates are Projected to Rise:
The Fed is eyeballing an interest rate increase in the coming months, and it’s likely to happen sooner rather than later. In fact, a recent Nasdaq article suggests there’s a 76% chance rates are going to go up by December of 2016. That means buyers who want to maximize their buying power will be eager to put in an offer and lock in a lower interest rate. Take advantage by listing your home before the rate increase hits to increase your chances of getting more buyer traffic, sparking competition among buyers and getting better offers.
Market Conditions Heavily Favor the Seller:
In a seller’s market, prices are up and conditions are ripe for fetching a good price for your home. In California in particular, buyer demand is extremely high and competition among home shoppers is fierce. That means your odds of capturing multiple offers, selling quickly and bringing in good money for your home are excellent. With home values also on the rise for several years continuing to rise, it’s a great time to capture an excellent return for your property.
Inventory has Reached Historic Lows:
The real estate market faced a unique set of circumstances from 2012 to now that have led to a dramatic decrease in overall inventory. High prices are squeezing out homeowners looking to upgrade to a bigger space, so they’re hanging onto their existing properties. Because of this, first-time buyers are struggling to get into the market, so they continue to rent. This caused a lot of investors to snatch up cheap properties when the market crashed and convert them into rentals. Today, investors continue to hold onto those properties because they’re very profitable. Also thanks to the market crash, a portion of homeowners are still underwater, which means they aren’t going to be able to sell anytime soon.
All of these things combined have resulted in a massive housing inventory shortage. The good news for sellers is, you get to take advantage of crazy high buyer demand and have the opportunity to sell for more. Read more about the cause and effect of this phenomenon here.
The California market is already hot, inventory is low, buyers are desperate for properties and all conditions are favoring sellers. Adding an impending rate hike to the equation creates the perfect storm of conditions that make it an ideal time to list your home.
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