When most people decide to buy or sell a home, they don’t take into account what the market is doing and how it will affect your ability to buy/sell. Take a look at the following market temperatures to figure out when you should list your home or go hunting!
This is an extremely competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
In a normal market, there is a fairly large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.
We’ve been watching home prices climb in our area, but it’s official: home prices are up nearly 15% in some area, marking a 5-year high. This returns us to the prices we saw in the summer of 2008.
What does this mean for you?
It’s a great time to sell, but also to buy. This increase shows that buyers have more faith in the strength of the housing market. While the beginning of 2013 was marked by cautious optimism, now that summer has arrived, it’s clear that more and more people are of the opinion that the market has taken more than just a temporary turn.
While inventory remains low, the rise in price will likely entice many sellers to enter the market, giving buyers more choice. And although interest rates have inched up, they still remain low overall.
All in all, this is a great opportunity to make your move!
**Data pulled from the UT-San Diego**
A Bill of Rights for Homeowners
Though the changes have already gone into effect (as of Jan.1), you might still be scratching your head over what that bill says and what it does for you. These new set of laws are designed to push banks to help consumers through the foreclosure, short sale, and loan modification process. Some of the finer points of the new bill package (as reported by Lily Leung of The San Diego Union Tribune) aim to:
– Stop dual tracking, the process of starting the foreclosure process while a loan modification has been submitted or being reviewed by the bank.
– Stop robo-signing, the process of approving foreclosure documents without proper review.
– Assign one point of contact to borrowers who are trying for a loan modification.
– Fight neighborhood blight, which happens when properties are not properly maintained after a foreclosure. It would allow cities to levy fines against homeowners who do not properly maintain their properties.
– Ensures renters of foreclosed properties are given at least 90 days before the eviction process is started.
-For violating any of these foreclosure laws, borrowers can now sue loan servicers.
The bill package was opposed by many financial institutions in California, but is generally applauded by homeowner advocates.
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To avoid last minute stress with the sale of your home on both ends, always double-check with your realtor about what exactly you can and cannot take. Small things unaccounted for or unexpectedly missing can turn into a huge headache. This list includes, but is not limited to: draperies, light bulbs, fireplace grates, appliances (e.g. washer/dryer), and mirrors that appear to be attached, such as the decorative ones found in hallways or bathrooms. Always check before you pack!