Like most professionals at a gathering, folks who have a question in your field of work, gravitate to you for information. As a Realtor, the three most common questions are; Is it a good time to sell? Is it a good time to buy? What is my home worth?
After all, in Real Estate, from a personal perspective, buying or selling at the right time is critical to maximizing a return on this important investment.
If you are moving within the same marketplace, or a similar region with trends that follow your current market, aside from the escrow fees and realtor fee, it really doesn’t make much difference when you are buying or selling. It’s the old Apple-to-Apple comparison. If you selling low or high and buying low or high, you have traded dollars and not lost much equity in that trade. As you acquire property as part of your investment strategy, then a matrix of tax consequences, appreciation, depreciation, cash flow, maintenance and risk play a greater role in your decision to acquire or liquidate your Real Estate holdings.
Now for the crystal ball projection. As stated before, the Sacramento Region outperformed the nation from March 2012 to March 2013 with an average of 35% appreciation. Areas like Roseville, Lincoln, and Elk Grove, that were hit hardest in 2006-2011, saw the biggest rebound in this past year. All in all, Placer, El Dorado and Sacramento Counties are back to 2003 price levels. Thus, the market has another 10%-20% to reach our highs of 2005/06.
Nationally, the graph below represents home appreciation for the last twenty years based on a linear progression of 4% appreciation annually. It does reflect that even though Real Estate has peeks and valleys, we are currently 20% behind the twenty-year trend line.
The health of the economy will have more impact on pricing and availability than any other metric. Based on past experience and listening to the experts, I’ve synthesize the data and applied it to our Region from Auburn, Roseville, Sacramento, El Dorado to Elk Grove and environs between. I predict they will grow at a rate of 6% in 2014. While that growth is much slower that the previous 18-months, it does beat the 4% on the twenty-year trend line.
Thus in closing, is now a good time to Buy or Sell? The answer to both is a definitive YES. As to your home’s value? Give me a call and we can work that out.
As always, I welcome input and your questions.
Kelly Groth
Broker Associate
Keller Williams Realty
www.kellygrothhomes.com
Kelly@kellygroth.com
916-316-4000=
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