In the current economic climate, divergent opinions emerge about the U.S. housing market. Many are as numerous as the number of economists who write about them. One analyst guarantees that indicators point to growth and recovery. Meanwhile, another insists America heads toward dire straits. So, who should we believe? Is the United States’ real estate market headed toward another recession? Or are all systems “go?”
Housing Market Conditions
The housing market plays a substantial role in the U. S. economy. This leads most commentators and policymakers to predict financial growth and development discussing housing whether they want to or not. Ultimately, however, the best move is to ignore economists and look, instead to the condition of the real estate market itself.
Anyone with even a passing interest in real estate unanimously agrees that nationally and locally, real estate gained momentum over the past several years, with low interest rates and even lower inventory driving rapid growth.
Measuring the Housing Market
Conventional wisdom assumes that higher home prices are always better than lower when it comes to measuring the condition of the housing market. However, possibly more important is finding the tipping point in housing costs which provide sellers with profits while simultaneously giving buyers great value. Both sides of the equation are important because homeowners typically demonstrate greater consumer confidence when they feel good about the value of their homes. Equally essential is the confidence buyers feel about how much home they can buy for the buck. The further their money goes, the better they feel about their own economic situations.
U.S. Housing Market Conditions
From purchases and prices to builder sentiment and construction, the U.S. housing market continues to grow. In fact, according to a recent story on CNBC, even with recent modest increases in interest rates, existing home sales in 2020 hit highest point since 2006, although listings remained at a record low.
Members of the National Association of Realtors (NAR) remain optimistic, despite the number for pending home sales dipping 2.3 percent in September, 2021. Most realtors agree that low supply is helping to push up prices. What’s more, Shaina Mishkin, a writer with Barron’s, reports that investors remain bullish about housing, at least in part, due to the boon in housing demand resulting from more people working from home.
So, as a homeowner, what does this mean for you?
- Get Off the Fence
If you’ve been on the fence about whether you should list your home, wait no more. Rates will likely go up before heading back down. And even with modest gains, they remain traditionally far more favorable than the rates once considered “good.” For example, in 2000, you would do well with any interest rate in the single digits.
- Homes Sell Quickly
Plan to close anywhere from 30-45 days in today’s market. With such low inventory, you may well enjoy a bidding war and an all-cash offer. Leverage this to sell quickly so you can present an all-cash offer on the home of your dreams. In this competitive market, offers with contingencies may well be ignored. Instead, sell your current property and then start looking for a new place to call home.
- Be prepared to ride out the market
If economists err, and the housing market declines, you will be in a good place if you need to wait it out if you’re living in your dream home. Although we do not foresee the housing bubble bursting, it’s always wise to expect the best but plan for the worst.
List Today and Enter to Win a Free Termite Inspection & Home Inspection
If you want to take advantage of the hot Southern California housing market, now is the perfect time to list your home for sale! Not only do you stand to maximize profits by selling at the peak of the seller’s market, if your name is selected, you will win a free termite and home inspection when you list your home with SoCal Platinum Properties, Inc. To enter, click here and provide your name, phone number and email address. In the “message” field, write “I want a free termite and home inspection.” Entries are limited to homeowners who live in the LA Basin, Inland Empire, Riverside County, Orange County, or the San Gabriel Valley.
About SoCal Platinum Properties in San Dimas, California
At SoCal Platinum Properties, we offer unique perks to clients who list their home to sell with us. One benefit that we provide, which most other realtors do not, is that we will pay for and arrange to have a home inspection before we put your home on the market. The reason we do this is because we want to eliminate potential potholes down the road, when prospective buyers could use items the home inspector uncovers as an excuse to pay less than they bid. What’s more, resolving minor repairs on the front end often means you can ask more for your home rather than selling it “as is.” To find out more about how to take advantage of this perk and list your home with SoCal Platinum Properties, call (213) 709-5178 today or compete this contact form.