Buyers or Sellers Market? How About Both.

I’ve been telling people for awhile now that it’s a great time to buy a home in Southwest California. According to CAR statistics, housing affordability in the state is the highest it's been since they started keeping records. And with interest rates still hovering near record lows and a variety of government stimulus programs available, people who have been frozen out of the market by upward spiraling prices should be taking advantage of this market in record numbers – and they are. Prices across our region have been relatively stable since the end of 2008 and in some markets have even starting to tick upward.

An even more positive market indicator is that some experts and media pundits are voicing cautious optimism about the economy in general and housing in particular. Folks, by the time the media figures out we’re out of the slump you’ll already be a day late and $2 short to the market.

But as good a time as it is to buy – it’s also a terrific time to SELL! Yeah, you heard me. It is an absolutely great time to be a seller in this market too.

Now before you accuse me of drinking on the job, let me explain. Obviously it’s not a great market for all sellers but for some of you the timing may be just right. Our inventory – that is, the number of homes on the market actively for sale – is at record lows. A year ago it was not unusual to have 10 or 11 or even 14 months inventory available. That was a lot of homes for buyers to choose from, literally thousands across the Inland Empire.

Then came a huge buyer surge that peaked across the region in Sep/Oct 2008. 1^st quarter sales this year were 2 – 3 times what they were a year ago. What happened? Inventory was depleted to the point where now many of our cities only have an active file of 2 months or less.

And there’s still a lot of buyers out there. Ask any Realtor® and they’ll tell you – the biggest problem with our market today is lack of inventory to meet ready, willing and able buyer’s demand. Any listing worth looking at is generating 20 – 40 – 90 offers, many for cash, many in excess of the listed price. And these are mostly for bank-owned homes that need work, or short sale homes that may take months to work through.

Imagine what a buyer would do for your well-cared-for ‘regular sale’ home.

As a Seller, you might be pleasantly surprised at what your home would bring today. Oh I know, it’s nowhere near what it was worth a couple years ago but that was then – this is now. It could be 10 years before you see that price level again, and there are some that claim you never will (I don’t believe them – this is Southern California after all).

But if you have equity in your home and want to sell, there’s a good chance by this time next week you could have 53 offers, 21 for cash, 14 over your asking price. If you recently watched ‘Shark Week’ on TV, you’ll recognize the feeding frenzy.

So if you’ve been thinking about moving up but were waiting for the price of your home to bump up a little – DON’T wait. By the time you gain $10,000 on your home, the place you had your eye on will gain $15,000 and interest rates will be .5% higher. The longer you wait, the behinder you get.

The bottom line in real estate is that it’s always a good market for somebody. Right now it’s a good market for Buyers - but frustrating. Many Buyers are submitting offers on 10 or more homes hoping to get selected for one after jumping through all the hoops the banks hold up. Your hassle-free, well-maintained home would be an oasis. That makes it a strong Sellers market for a select group of homeowners in a position to take advantage of the opportunity.

Few of us were able to peg the absolute top of the market reliably – otherwise you wouldn’t be thinking about selling today. But even fewer of us may be able to peg the absolute bottom of this market. If you’d like to look into what you might expect as a Seller in today’s market, contact your favorite Realtor®. Don’t let this be another one of those ‘Man I wish I woulda…’ moments in your life.

Make your house your home, not an investment vehicle.

Anyway, that’s just my opinion… I could be wrong.