According to the MBS Highway, stocks and Mortgage Bonds are extremely high. In fact, the Case-Shiller Home Price Index, considered the “gold standard” for appreciation, shows home prices rose 13.2% year over year in March. This is a 15-year high and even stronger than the 12% in the previous report. The 20-city index rose from 12% to 13.3% year over year, with almost all the cities showing strong gains. With such high numbers, is it possible that the associated housing market is too hot?
2021 VS 2020
Pending Home Sales, which measures signed contracts on existing homes, decreased by 4.4% in April. And the reason for this is due to a lack of inventory since available homes are in such high demand. Year over year Pending Sales is up 51%. But people skew the figures. For instance, last year (in April, during the midst of COVID-19) no one signed contracts.
The National Association of Home Builders (NAHB) reports unsustainable trends which have emerged in the housing market:
- The combination of a decade of underbuilding of new construction
- Favorable demographics
- Historically low interest rates
- A shift in consumer preferences
Crazy Seller’s Market
When it comes to existing home sales, inventory is unilaterally failing to meet demand. This has resulted in record-breaking sales made “over asking price.” In fact, some realtors report their buyers offering vacations in addition to financial incentives to sweeten their offers. What’s more, to compete, buyers are waiving inspections and appraisal. In recent study, more than 69% of real estate gurus surveyed said they expected more houses to go up for sale in the second half of 2021 or the first half of 2022. The silver lining for this is that if more homes go up for sale, home prices should begin to cool down. Experts predict annual home value growth to slow to 4.5% in 2022 and continue a downward trend through 2025.
Considering Listing Your Home?
If you’ve been mulling over whether to list your home for sale, now is the time! In such a heavily weighted seller’s market, you will be perfectly positioned to sell high. However, the only drawback is that, if you plan to buy a replacement home, you will join a throng of fellow buyers competing for available homes. Or, if you plan to sell without rolling the proceeds into another house, you could face hefty capital gains taxes. Check with your Certified Public Accountant (CPA) for details.
In a recent report by ABC 7 News, Leticia Juarez pointed out benefits to buying and selling in the Inland Empire and San Gabriel Valley, where SoCal Platinum Properties, Inc. is located. “The market is particularly intense in counties like Riverside and San Bernardino. However, experts say prices in the Valley and IE are slightly more affordable, especially for first-time buyers.”
If you’re interested in listing your home for sale in the Los Angeles Basin, the San Gabriel Valley, the Inland Empire or Riverside County, contact Ron Johnson today. He will walk you through the process, so you understand what you are getting into if you list your home in such a hot market. Also, Mortgage Broker Jorge Abich will help pre-qualify you so your offer on another home will be perfectly positioned to win the bid.
About SoCal Platinum Properties, Inc.
If you are interested in buying or selling property in or around San Dimas, California and the surrounding area, don’t get caught in a Catch 22 — owning two homes or none at all. We list properties and advertise them to guarantee a swift sale for maximum profit. We also assist home buyers as they hunt for, make competitive offers, and purchase residential property. Realize your dream of homeownership, reduce your house payments to free up funds for whatever purpose you see fit. We offer the following refinance options: FHA Streamline, FHA Cash Out, FHA 203k, VA Streamline, VA Cash Out, Conventional, Commercial and Jumbo loans. Lock in your low rate today (213) 709-5178.