A Great Time To Buy Or Sell

Posted on November 26, 2009 by  
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To Sell or To BuyMost look at the Holiday’s as a slow time in the Real Estate market.  Historically, that’s been correct.  Our minds turn to family and friends, and the many celebrations of the season.  However, 2009 is a different market, and now is actually a great time to be in a position to either buy or sell a home.

For sellers, with housing inventory so low, and limited properties coming on the market, your home has the chance to stand out. If you are looking to sell in the next few months, there are three factors that favor quick action: 1) Inventory is at its lowest point of the year; 2) Buyers actively looking, during this time of the year, are seriously interested in purchasing a well-priced home; and 3) Rates are at historic lows, which allows buyers to buy a higher priced home (when rates go up, affordability goes down).

As a seller, if you are looking to potentially sell your home in early spring, feel free to contact us for a list of items you can begin working on, to ready your home for market.  Having time to prepare your home, if necessary, allows you to manage the process over months, rather than weeks. We will walk you through our recommendations, and even manage the entire process for you, if you prefer.

How to prepareFor buyers who are actively investigating housing options during this time of the year, you are in a great position to secure a great home for a good price. As we mentioned above, rates are at historic lows. Interest rates began dropping last November, when the Federal Reserve began spending $1.25 trillion to buy up mortgage-backed securities in an effort to lower rates, loosen credit availability and bolster the long-suffering housing market.

This week, average rates for 30-year fixed mortgages had fallen to 4.78, matching a record low set last spring. However, per the conversations we are having with lending institutions, rates will likely increase, probably within the next 12 months to 6.0 or 6.5 percent.

Now is the time to act. Delaying may cost you the opportunity to buy the home of your dreams. There are still ~ 80 homes on the market in Los Altos. Some of those homes have been for sale for a while, and have seen their list price adjusted downward. Others homes have lasted only a few days, or weeks, on the market as they were snapped up quickly as a result of being priced and positioned for today’s market.

As spring rolls around, there will be additional inventory coming on the market. However, you will be competing with a larger pool of buyers for those homes. Over the past few months, we have seen a continued trend of multiple offers for well-priced homes. We fully anticipate that this will be the case next year.

Keys to successWith a strong real estate team in place, a seller or buyer could have a tactical advantage, if they utilize the right tools for today’s market. Carol & I would be happy to sit down with you and share our strategy which is designed to position you for success. If you are looking to move into Los Altos, or simply across town, we are confident that we can help you. Simply contact us today at 650-823-1434 for an appointment.

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