Strap Yourself in for the 2013 Market

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What’s driving the real estate market?  People are asking this question.   I recently sold a property for more than $500,000, which was 50% above its list price!  Three drivers are affecting the market:  interest rates are great, demand is increasing, and inventory is shrinking.  Here’s what this means to you.

First, low interest rates are fueling the market and the economy.  The mortgage loan rates are still fantastic, which makes buying a home more affordable than ever.  A 30-year fixed-rate mortgage hovered at record-low rates during 2012.  If you wait and interest rates rise, you could get locked into spending a few hundred extra dollars a month on your payment.

Second, there’s also lots of demand.   In the Bay Area, we have high tech, biotech and financial services from banking to venture capital companies.  People moving in from overseas to fill positions in these fields have fueled the demand.  So when a home that you’re interested in hits the market, plan to see it as soon as possible and make the best possible offer that’s at an appropriate price point for the seller.  Remember, there’s a lot of demand.  If you hesitate, the property could be gone tomorrow because others will be making offers.    

Third, supply is drying up.  If we look at what’s happening in the REO sector—the foreclosures are decreasing.  Short sales are dropping as well.  Those in the conventional market are getting great rates, so they don’t want to move.  With the supply dropping and demand increasing coupled with favorable interest rates makes it a great time to sell.  After all, what you get for your home often comes down to supply and demand.

It’s a wild market with lots of positive signs.  Give me a call so I can tell you where to be positioned and how to be successful in this market.  Please contact me at (650) 766-5300.  We’d be happy to assist you.