Home prices rise 5.7% in December: S&P/Case-Shiller
Every year as spring approaches, home owners start to wonder if “now” would be the best time to sell. They honestly believe that spring and summer are the best time to sell a home.
The truth is that the real estate market has become far more sophisticated than winter vs. summer.
Most savvy home owners understand that selling their home has far more to do with the state of the economy, and people’s willingness to make large purchases vs, whether or not it’s the best time of year to sell a home.
There are many factors that affect a buyer’s decision to buy. Interest rates, the stock market, energy prices, consumer confidence and more contribute to a home buyer’s decision to buy (or not buy) a home. It is the economic state of affairs that has the largest effect on determining if a home buyer will take the leap and purchase a home; considering it may be their biggest purchase over the next decade.
The fact is that economic data is far more accessible than ever before. In 2016 more people are watching and learning how the stock market affects the bond market, and that in turn the bond market affects the Federal Reserve which in turn affects interest rates. It is all about the buyer’s perception of the market as to whether it’s time to make a large capital investment or not. It really doesn’t matter whether its spring, winter, or fall. It’s the economy conditions that will have the largest impact on the buyer’s decision process.
It’s the simple law of supply and demand. If the buyers are not comfortable buying, it really doesn’t matter what time of year it is…your home may not sell.
If you add the rising home prices to the economic uncertainty, you have another reason that a buyer might be fearful. In fact, home price have risen 5.7% in December (according to the Case-Shiller housing report http://www.cnbc.com/2016/02/23/home-prices-rise-in-december-2015.html ) this knowledge might help you better understand the mindset of the average consumer.
All this being said there is a silver lining to this cloud.
The basic law of supply and demand is also working in favor of the home seller. The housing inventory in Los Angeles County is still extremely low, which is also fueling a hike in home prices.
So if you’re inclined to sell your home, then here’s is what you need to know:
- It is already spring time.
- It is important to be ahead of your competition.
- It takes approximately one week to properly prepare a home for the market.
- Know who is selling, or thinking of selling around you.
Remember your neighbors are probably thinking the same thing as you, and the more competition you have, the harder it will be to get the highest price for your home.
The last piece of advice…If you’re waiting for the price of your home to go up, don’t! Whatever happens to your home will also happen to the home you want to buy.
Spring is in the air, and while the assumption that it’s the best time to sell is not always true…this year it just might be.