Let's put this myth to bed.
For the last six months all I have been hearing is the everybody wants to wait until Spring 2015 to do something.
I think that is a mistake and I will tell you why.
How many agents or so-called experts tell you that December is a terrible time to sell? Most do. This December I had my best month of the year capping it off with a sale for a full 10% over asking. Why? It's simple. People do not want to move in December. They HAVE to move in December. That equals extremely motivated buyers who are willing to over pay for the slim inventory available in December. Agents tell you December is slow because theyd on't want to work or never have worked. Every single December since I got into this business has been my best month of the year. This is real estate, not grade school. We don't get three month summer vacations and winter breaks unless we choose them.
To that end, the myth of the Spring selling season is just that. If every seller who has said they are waiting until Spring actually waits until Spring what does that do to the market? It creates a ton of inventory in the market all at once. For my high school economics classmates what does that create? Excess supply. We are a capitalistic economy with supply and demand driving the prices. Low supply drives up prices, excess supply drives down prices. Low demand drives down prices, high demand drives them. While this should create a robust balanced Spring market, why not take part in the run up rather than join in for the stabilization?
Case in point, in Lafayette there were 46 homes for sale last September. Today there are 10. As a seller, would you not receive more offers when you are only one of 10 homes on the market in an entire city? Currently there are 36 homes for sale in all of Walnut Creek. In September there were 93.
If you are a seller, now is the time.
If you are a buyer, shouldn't you wait? I would say possibly. The reason being that we are going to have a bit of a run up in the next 60 days. Getting into this market will be a little rough and tumble but you will save some money. Like $10,000-30,000 because this market is going to drive up the prices. As a seller you might say "Great!" I want $30k more for my house. That makes sense. My question is "Where are you going to move?", because you're going to pay more for that house too. If it's a move up it could be a lot more.
But don't believe me, listen to the top real estate economists in the world. Mark Zandi of Moody's Analytics predicts a 20% increase in existing home prices for 2015. Lawrence Yun of the National Association of Realtors predicts more buyers due to improved job market conditions and a return of buyers who were in the "penalty box" due to foreclosure or short sales.
This is the year.