The fall is here, and so are the turkeys! Winter is just around the corner, and with the cool air comes a cooling of the real estate market as well. Or is it cooling down? It’s a really good question.
As you can see by our report this month, the number of current listings on the market is down, and the number of closed sales is down as well. It seems there is not much happening. But, why? Interest rates are still a screaming deal and buyers are eager to buy, even though it is not always easy to get those mortgages. So, where are the sellers? Could it be questions on the stability (or lack of stability) in the economic state of our country in general, in the Golden State specifically? Could it be people are feeling that if they wait it out, they may make more money if they sell their home (I want that crystal ball!)? Could it be that there are too many people who worry they may have to go to the closing table with a checkbook to sell their homes? It could be any reason above.
However, there are two very interesting things to note this month: 1) the number of days on the market is even lower than the summer months, and 2) 46% of the closed sales for this report sold for at, or above the list price! How about that? That is certainly proof that there is a demand out there – even 436 Green Glen Way closed. After more than a year on the market, 4 price reductions and 3 escrows for this short sale home, it closed. This is further confirmation on the value of pricing a home properly in the beginning. (With a short sale, there are many additional variables, please call us if you have questions about this).
It is incredibly valuable for sellers in a market that has good demand to price a home well in the beginning. It reduces the pain of long drawn out price reductions, possible carrying costs, and also you could risk chasing the market down as the buyers lose interest in your home. After all, market value is what a seller is willing to sell for and what a buyer is willing to pay. You can price the home at any value, but if there is not someone willing to pay it, it will sit there and sit there. No one wants that. Price it well in the beginning, hire a real estate professional to properly market and promote your home, make sure your home is set up to show well and easily, and you are on your way!