How's the Housing Market?
It's the number one question I get asked every day. "How's the market?" The easy answer is "fantastic!" But what does that mean, and for whom? If you are already a homeowner looking to sell your home, things are looking very rosy. Prices are approaching and in many areas have exceeded what they were at the last peak in the market in 2007. The median home price in Los Angeles county broke the record from 10 years ago in May with a median home price of $560,500, up 6.8% from 2016.
With job numbers improving, limited housing, and growing households, economists are projecting prices will continue to increase over the next few years. With so many buyers having put off their moves for so long during the recession, and now feeling confident enough to make the move, the balance of supply and demand is in the Seller's favor. As long as you price your home correctly, homes are selling quickly and often for over the listing price. It's the perfect time to sell a home, to cash out on the fiercely competitive market and take advantage of low interest rates to make the move to something new.
Check out this article from the Los Angeles Times.
With mortgages still available at near historic lows, the average mortgage payment gets you a good deal more house than it did before. Rents rival the cost of homeownership, encouraging more buyers to enter the marketplace. Buyers continues to outpace the number of homes available for sale, keeping prices moving upwards in keeping with supply and demand. Most homes prices correctly receive multiple offers and sell for over the list price. Buyers need to bring your A-game to get a seller to accept your offer above all others. That means having all your ducks in a row to present yourself as the best possible buyer.
Sellers want to know makes you a better buyer than your competition. Show them:
- You are qualified. You'll need a strong pre-approval letter from a reliable lender that your agent can vouch for and verifiable funds for your down payment and closing costs. Not all lenders are created equal. Sellers like to know your lender can get the job done quickly and have control of their own underwriting. I work with lenders who commit to getting loans done in 10-21 days. Talk to me about what to look for before getting pre-approved.
- You are committed to the purchase. Most Sellers want to know their home is going to someone who will care for their home. Let them know why their house is important to you. Offer terms that show the Seller you are serious about making this work: a realistic price, shortened inspection schedule, and usually a 30-day closing timeline or less.
- You are the best buyer to work with. Seller's want to know they'll have a smooth escrow. Show them how great you'll be to work with, that you have realistic expectations, and have a great team on your side. Buying a home is a complicated process. Having an agent who can prepare you for what to expect throughout the home buying process, and a lender who knows how to move your loan along is crucial to a smooth transaction. Sellers know this and will look for the right buyer with the right team supporting them to get the home sold.