What's weighing down sales and pushing prices higher? A lack of homes for sale. So prices continue to rise as there is strong demand. Multiple offers are the common story for a properly priced property today. This is true here in the South bay, Torrance, Redondo Beach and Manhattan Beach. It is also true pretty much everywhere across the country today.
As we addressed in our post about the cost of waiting, if you are a buyer now, even with current prices, is good time to buy. You will benefit from property appreciation and reducing your loan balance and create wealth.
If you are considering selling keep these four words in mind. Buy Low, Sell High. Well prices are high and may go higher, but timing the top of the market is a science that has not been perfected. Consider selling today, and take advantage of capital gains tax exemptions of up to $500k for a married couple.
Back to our expert market analysis
As the real estate market continues to move down the road to a complete recovery, we see home values and home sales increasing while distressed sales (foreclosures and short sales) continue to fall to their lowest points in years. There is no doubt that the housing market will continue to strengthen throughout 2018.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory!
Here’s what a few industry experts have to say about the current inventory crisis:
Lawrence Yun, Chief Economist for the National Association of Realtors
“Inventory coming onto the market during this year’s spring buying season…was not even close to being enough to satisfy demand, that is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”
Sam Khater, Chief Economist for Freddie Mac
“While this spring’s sudden rise in mortgage rates [took] up a good chunk of the conversation, it’s the stubbornly low inventory levels in much of the country that are preventing sales from really taking off like they should… Most markets simply need a lot more new and existing supply to cool price growth and give buyers enough choices.”
Alexandra Lee, Housing Data Analyst for Trulia
“This seasonal inventory jump wasn’t enough to offset the historical year-over-year downward trend that has continued over 14 consecutive quarters…Despite the second-quarter gain, inventory was down 5.3% from a year ago. Still, this represents an easing of the double-digit drops we’ve been seeing since the second quarter of 2017.”
If you are thinking about selling, now may be the time. Demand for your house will be strongest while there is still very little competition which could lead to a quick sale for a great price. Call me today to discuss your personal situation.
Joe McMahon Keller Williams Beach Cities Realty, 830 S. PCH El Segundo 90245. BRE#02002043
Homes for Sale in Torrance, Homes for sale in Manhattan Beach, Homes for sale Redondo Beach