Happy Easter and Welcome Back to my monthly real estate marketing report for Southern California for April 2017, I’m Jeb Smith, Real Estate Broker with ReMax Terrasol. The spring market is now in full effect and with that we are starting to see some changes in our local market. How will this affect you as a Buyer or Seller in coming months? Let’s dig a little deeper into the details of the market and help you make some sense of what is going on. If you are interested in the actual market statistics, I will provide a link here.
The spring market typically offers more homes for sale and this year is no different, although the bump in inventory is a bit delayed. Over the course of the last few months, we were seeing just as many homes go into escrow as were coming on the market which was keeping inventory at rock bottom levels. Over the last few weeks, we have started to see the number of homes coming on the market increase a little bit in certain price ranges. This is a good thing as Buyer Demand remains high and more homes on the market opens up opportunities for those Buyers who have been struggling to find the perfect home and also for those Buyers who keep getting outbid since everyone is bidding on the same homes due to “few choices” when it comes to inventory.
Let’s not get confused, Sellers are still in control of the current market and likely will be for some time. The gradual build in inventory hasn’t changed what we have been discussing for the last year or so but it does create opportunities for both Buyers and Sellers as Sellers will be more likely to put their homes on the market when they see more homes available for their next purchase. The increased inventory also gives Buyers more opportunities to find their perfect home instead of constantly feeling like the right home will never pop up in their price range.
The market is still appreciating with homes coming on the market a little higher than the last one that sold and this will likely be the case until we see more of a supply and demand balance between Buyers and Sellers. This is really where Sellers have to be careful as pricing your home correctly is the best strategy to get it sold for top dollar in the shortest amount of time. There are a number of ways to price a home depending on your goals and timeframe and that’s why it’s so important to speak to a Professional Realtor instead of relying on websites like Zillow or what your co-worker with real estate license and sold 1 home in the last 18 months is telling you.
For anyone in the market, interest rates are a key piece of the puzzle. The good news is, despite 2 Fed rate increases, mortgage rates are at their lowest levels since the election last November. Conventional and Jumbo 30 year fixed rates are in the low 4’s for qualified borrowers and FHA rates are well under 3%. If you’re a first time buyer, several interesting products are available to help you get in your first home. The bottom line is the mortgage market continues to support a strong housing market.
As you know all Real Estate is local, so if you are a Buyer, Seller or Investor in Today’s market and you have questions, I would love the opportunity to help guide you in the right direction. If you would like more information about me, please go to my website www.jebsmith.net or check out my other videos on Youtube. As always, I appreciate you taking the time to watch and I look forward to seeing you again next month. Make it a great day