As described in our last blog, California home values have gone up 4.7% over the past year and Zillow predicts they will rise another 7.3% this year. Rightfully, even if you haven’t thought about listing your home, these increases may have spiked your interest. But as they say, all good things do come to an end. So, if you’re trying to maximize your return on investment, it’s best to list and sell during the peak, before home values drop. To receive top dollar, it’s best to list sooner in 2019 than later.
Accordingly, you should do your research first. Do you know how much your home is currently worth? If not, instantly find your home value and for free here. Next, consider how your home compares to your competitors. Do their homes have added features? How are they priced? With the help of a Realtor, as myself, we can do a full competitive analysis to price and market your home right.
As time passes, you’ll notice your competition will increase. This is one reason you should list sooner than later. While it has been a seller’s market, as the number of homes on the market for buyers to chose from has been low, this is about to change. You see, when there are only a few listings available for buyers to choose from, you’re more likely to see a bidding war. When there are many homes to choose from, however, then it shifts more to a buyer’s market, as we will soon see.
Furthermore, the sooner you list, the greater the profit you’ll see. Reason being, although values have been and continue to rise, profit margins will diminish when competition increases. For instance, Ali Wolf, the director of economic research at Meyers Research, states “Sellers who list their homes earlier in the year tend to get a higher sales price, often above list, and shorter days on market.”
Moreover, another factor to consider are the current and expected mortgage rates. As 2018 was coming to an end, the mortgage rates were starting to creep up. But, at the turn of the year, we see a temporary drop. As such, if you’re planning on selling your home and buying a new one, while financing the property, you should list and buy now to take advantage of the reduced rates. In other words, as a savvy seller and buyer, you’d want to sell your home for the greatest return on investment and be able to buy your new home at the lowest rate possible. To do so, this is the time.
Finally, data suggests that we are seeing an increase in first time and move up home buyers. Reason being, there are a great number of millennials turning 30 years old in the next two years. And since around 30 years is the average time when millennials purchase their first home, then this is the time you should list. Older millennials, those in their middle to late 30s have also owned their existing first home for a few years, and are now ready to move up, thus brining more homebuyers (and sellers) into the market.
If you have any question, please don’t hesitate to contact me, but hopefully you can see that the sooner you list in 2019 the greater your reward.
And as always, if you need any help listing or buying a home, please don’t hesitate to reach out.
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