Anyone who has a Temecula house they want to sell this year and has been waiting for that “perfect time” to put their home on the market, well, that moment has arrived. Let me explain why right now is the perfect time to sell.
Spring has traditionally been the busiest time for real estate sales across the country. Of course there are always exceptions to this rule – primarily in resort areas. For example, the Palm Springs area (Coachella Valley) market always heats up in the fall as the snowbirds begin their migration from northern destinations that will soon be covered in a blanket of snow.
Temecula and Murrieta typically start to see more real estate action when schools take their Spring Break which typically coincides with the Easter holiday. Folks come to the area to visit with friends and family during the holiday period and start to mull over the possibility of living in a community as beautiful and affordable as ours.
Being a family-oriented community, most who want to move to the Temecula-Murrieta Valley want to make the move after school gets out for the summer and long before it starts up again in the fall; making May the perfect month to purchase a new home, open escrow and get settled and acclimated to their new surroundings, giving the children an opportunity to make new friends and feel at home before heading off to their new schools in September.
The market moves now
Traditionally (again there are always going to be exceptions) 60 percent of all home sales take place between May and August each year. The savvy seller who puts their home on the market in May maximizes their exposure in the marketplace. As spring turns to summer, more and more homes will enter the market, competing with buyers’ attention. List your home now and you stand the best chance of more showings with more qualified buyers who are more likely to bring you a full market offer. The last thing you want is for buyers to shelve their 2014 plans to relocate to Temecula, as they get ready for going back to school and the holiday season.
Many predictions from last year would have us at a 5 percent interest rate by now with expectations that they will be at 6 percent or higher by the end of the year. As of the time this article is being prepared, 30 year fixed rates are being advertised* just over 4 percent and a 5 year fixed adjustable mortgage can be had for under 3 percent with the right credit and down payment.
However, anyone considering purchasing a home knows that these rates can change overnight. Buyers today are poised and ready to hit the streets with approved financing in hand – wanting to buy a home before they shoot up and find themselves left behind.
Pricing is everything
Last year saw a spike in the local real estate market jumpstarting the local economy with close to a 25 percent increase in real estate values. Multiple offers, over list prices were the norm and not the exception a year ago. While many homeowners today have fallen into the trap of believing that the trend should repeat itself, there just has not been anything other than overly ambitious agents and hungry sellers fueling this dream.
The truth is a huge percentage of homes that are selling are selling for significantly less than their initial list price. The longer a home sits on the market overpriced, the less likely that they will receive a fair market offer. Buyers will feel a sellers’ desperation to sell and come in with low-ball offers justifying their action with the belief that there must be something wrong with the home, otherwise it would have already have
When pricing a home today, forget about what you think its worth. Don’t spend time looking on Zillow, Trulia or any of the other countless websites that offer an automated opinion of value. Rather, work with a trusted REALTOR and carefully analyze the last 60 days of sold properties similar to yours and close to yours.
At another time, I would suggest also looking at the active listings in the MLS; however today, many are so over-priced that it just skews the numbers. Remember, the value is what someone is willing to pay for it – it has nothing to do with your plans, dreams or expectations.
As mentioned above, today’s market is not seeing multiple offers – buyers are not bidding prices up, thinking they have to snag a home now before they get shut out of the market. My own predictions for the housing market over the next several years will see a modest 5 percent to 6 percnt increase in value. This is a traditional market and if you were to look at the long term value of real estate, you’ll discover that this is very typical – it’s just that we went through some crazy times in both directions over the last 10 to 15 years.
A 5 percent difference in price a year from now won’t make a big difference to buyers, so they are not in the same rush they were in a year ago.
Technology is more important than ever
Every year society as a whole experiences great leaps in technology, and for the average consumer I don’t think it is any more prevalent that in the world of real estate.
In the past, technology for REALTORS focused on their websites and MLS searches. It was important to syndicate their listings so that individual homes could be found.
Today, it’s all about mobile devices, smart phones and tablets. Make certain that your agent has the necessary tools and technologies available to make your house jump out of a 2” smart phone screen.
Mediocre photos, more than ever, will cripple your chance of achieving your 2014 real estate goals.
Call us today and get the information you need to make the right decision. The info is free, call now at (951) 296-8887.
Questions regarding available inventory and/or other real estate matters please contact me, [email protected] Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR), Traveling State Director, California Association of Realtors® (C.A.R.).