First, of
course, we could note what others think. The recently-released May 2013
National Housing Survey by Fannie Mae showed that 40% of responders said that
now is a good time to sell a home. That is up from only 16% in May of last
year. At the same time, 76% of Fannie Mae's responders said that it is a good
time to buy a home -- just a little more than the number of those who thought
so last year. Redfin has surveyed real estate agents on the same issue. 82%
said that now is a good time to sell, compared to 54% last year.
Probably the
best reason for thinking that now is a good time to sell is because now is a
good time to buy. "Wait a minute!", you say. "How can that be?
Isn't it contradictory?" Well, no, it's not. Whether it is a good time to
sell or a good time to buy isn't like a zero-sum game where what's good for one
is necessarily not good for the other. Good conditions for buying can mean that
there are more potential prospects to sell to. Moreover, just because the
conditions for buying are good doesn't necessarily imply that prices must be
low. Of course, if they are extremely high, then that won't be a good time to
buy.
The low
interest rates that have recently been available have done two things for
sellers. They have created a larger pool of potential buyers and they also have
made it possible for prices to rise without shutting out those buyers. This
will not, however, last forever. Even now we see occasional headlines that say
things like "interest rates recently roared back up to 4%". (Who ever
would have thought that 4% would seem high?) While they currently seem to be in
a floating back and forth mode, some day the Fed will reverse course and they
will begin to rise.
Another
reason to think that now is a good time to sell is because inventory is still
low, meaning there's less competition. To be sure, inventory is creeping up in
many markets, but it is still historically low (60% of the peak in 2007). Why
is inventory so low? There are disparate reasons, but certainly one of them is
the belief that prices will continue to rise. Some people want to wait for that
to happen. It is not just owners who think prices will rise. According to the
same Redfin survey, 44% of agents thought that prices will rise "a
lot" in the next twelve months. Only 11% thought that last year.
Whether it
is a good time to sell is always, ultimately, an individual question. What
would be the reason for selling? Would it entail another purchase?
So, is it a
good time to sell? Sure is!
Lupe Andrade,
RE/MAX Estate Properties, is an experienced and skilled real estate professional having served hundreds of clients/buyers/sellers/investors. Lupe is committed to her client's satisfaction and knowing she has helped them have an enjoyable, efficient, AND profitable real estate experience. Lupe Andrade KNOWS the market
in the Southbay & Southern California regions.
Give Lupe a call to discuss your plans to sell or buy your home, gather
information, and find out what can be done right away to get you the best price
with the least time on the market!
Call 310-427-3368 (Ask For Lupe)
Call 310-427-3368 (Ask For Lupe)
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