Is Now a Good Time to Sell Your Home?

The housing market is a dynamic entity, always ebbing and flowing with the currents of economic indicators, buyer sentiment, and a myriad of other factors. If you're pondering the question, "Is now a good time to sell your home?" you're not alone. Let's dive into the nuances of the current market, driven by supply and demand, to provide you with a clearer picture.

Understanding Supply and Demand in Today's Housing Market

At its core, the real estate market operates on the basic principle of supply and demand. When the number of available homes is lower than the number of buyers looking to purchase, competition heats up, and prices rise. This fundamental concept is what's currently shaping our market.

The Impact of mortgage interest rates

A significant factor influencing buyer behavior is the cost of borrowing money, particularly through mortgage loans. While predictions about interest rates in 2024 vary, it's generally understood that rates tend to increase with inflation and decrease when inflation falls. Higher mortgage rates diminish buying power, which is a crucial consideration for potential sellers and buyers alike.

Regional Insights about California's Housing Market 

According to Jordan Levine, an economist at the California Association of Realtors (CAR), we're seeing some interesting trends in California:

• Interest Rates vs. Housing Prices: Despite falling interest rates, housing prices are expected to rise, with a 6% increase anticipated across California in 2024.
• Election Cycles and the Market: Analysis of the last three election cycles shows no significant impact on housing market trends, debunking a common myth about political influence on real estate values.

A Look at our Local Housing Market

Housing statistics reflect the activity from the prior month, but if we want to know what’s happening now, we need to know what’s been selling over the past week or two!  Based on our real-time experience with buyers and sellers, we’re poised for a significant increase in housing inventory within the next 30-60 days.  

We’ve seen an up-tick in listing signings as well as an increase in title company escrow openings.  Since it takes sellers time to begin to prepare for a move, as well as the sales preparation time real estate agents typically need to complete property inspections, repairs, and marketing efforts, we expect to see these new listings coming on the market by the end of February and the beginning of March. 

Increased inventory means more competition for sellers but also more options and potentially less competition for buyers. 

Current Los Gatos home sales show a significant spike in median sales price

The recent increase in sales prices in Los Gatos and the surrounding cities underscore the strength of the market for sellers. Although we’re only halfway through the month of February, we’re seeing a significant increase in sale price.  It will be interesting to see where the median sales price lands at the end of February!

Success story in Los Gatos

One standout example illustrates how well-positioned homes can fetch prices well above the listing price, thanks to multiple offers.

This mid century modern gem, listed by one of my colleagues, is testament to our current market being excellent for sellers.  This Los Gatos home was listed for $3.5M, and sold for a staggering $4.11M — $600K or 17% over the asking price!  The winning bid outpaced six others, offering an all-cash payment and a swift 7-day escrow closure. One of the keys for selling this home so successfully, aside from the market, was the beautiful preparation that was done prior to listing it - from the new paint to the flooring and lighting, and of course the gorgeous staging. 

Maximizing Your Home's Visibility and Value

With more buyers in the market, ensuring your home reaches a wide audience can significantly impact the offers you receive. Maximizing exposure through open houses, social media, and various marketing channels is more critical than ever.  Open houses often play a vital role in this strategy, offering a direct way for buyers to engage with your property. Recent open house feedback indicates a surge in open house attendance with some homes having as many as 100 people through a home over recent weekends, signaling a strong buyer interest in the market.

The Power of First Impressions

It's often said that it only takes one buyer to sell a home. This is especially true in a vibrant market where the first viewer might be the most motivated. However, broadening your home's exposure through various marketing channels ensures that you're not relying on a "one and done" approach. More visibility increases the likelihood of receiving multiple offers, potentially driving up the sale price.

Should you sell now or wait?

With home prices on the rise and a competitive landscape for buyers, the current market conditions favor sellers. Homes are selling quickly, often above the list price, reflecting a strong demand reminiscent of the bustling market seen in early 2022.  For anyone considering selling, the current environment offers a unique opportunity to maximize returns on your property.

However, the decision to sell or buy now should be based on individual circumstances and the understanding that today’s market conditions may change.  The good news is that the current trends suggest continued growth in prices and competition in the coming months.

Conclusion

For those pondering the sale of their home, the market is signaling a strong seller's advantage, characterized by quick sales and competitive offers. Drawing from recent success stories, it's clear that well-prepared and strategically marketed homes can achieve remarkable outcomes. As you consider your options, reflecting on these trends and how they align with your goals is essential in making an informed decision. It's essential to stay informed and consider all aspects of the market before making a decision.

Remember, the best time to sell is when it suits your needs and aligns with market conditions conducive to your goals. If you're leaning towards selling, the current market dynamics offer a promising opportunity to achieve a favorable sale.

Reach out if you’d like a custom, market analysis of the value of your home in our current market.  Comparable market evaluations and real estate reviews can be highly valuable in the overall decision process in deciding to sell your home.