As 2016 drew to a close, many homeowners found themselves wondering if the seller’s market was a distant memory. November sales stats dropped some dismal data on pending closings, but the good news is that December bounced back with a bang! In a just released report, the National Association of Realtors (NAR®) announced that December pending homes sales picked up – in large part due to progress here in the West. With 2017 projections estimating sales to rise 2% over last year, it is STILL a great time to sell.
#1: Rates Are Still Historically Low. Yes, the Fed key rate has risen. Yes, another Fed key interest rate rise is projected. But no…these are not the interest rates that your parents paid and the current cost of borrowing is still in the realm of historic lows. Note that other factors such as the stock market, the US Treasury Yield and global factors also impact rates so it isn’t a one-stop shop to a rate hop every time the Fed makes a move.
#2: Econ 101: Supply & Demand. Not to bring up bad memories…but who remembers that high school economics class? If you remember that low supply equates to high demand and higher prices – you have just described the playing field for real estate in recent times. With inventory levels nearing 13 year lows…the return on your investment could be higher than you ever hoped!
#3: Rising Prices (Still). The price increases that scare buyers are the ones that motivate sellers – and for good reason! NAR® has reported 57 months of consecutive home price increases, including nearly 7% year-over-year from 2015-2016. If you think you missed the window on a seller’s market – think again!
#4: Employment Data. Those who follow the monthly jobs’ reports know that employment speaks volumes about the rest of the economy. After all, when more people are working, more people can spend money, purchase homes and make home improvements. Consumer confidence is on an upward climb as unemployment decreases and wages increase around the country. In Silicon Valley, we see the highs of this spectrum and the job opportunities and wages here make this a great place to live, work…and buy a home.
If market timing is the only thing that has been holding you back from selling your home, I would encourage you to take a closer look at the opportunities available to you and let me know if I can be of any assistance. In addition, if your home is a good fit for your life – but not a great one – this could be the door of opportunity to get you into a better situation. A little strategy and a lot of expertise go a long way – if we combine your ideas and mine, we CAN make 2017 your best year yet!
*Data above courtesy of: Get Moving! 4 Urgent Reasons You Should Sell Your Home in 2017
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/