I often get asked the question, …when is the best time of year to sell a Los Angeles Real Estate?
As always the spring and summer is when there are the most buyers out looking seriously to buy before the summer, or before school starts. Most people expect higher price points and a faster sale, and that is usually the case, but, and it’s a big but, there has been such low inventory in Los Angeles Real Estate for so long, there are still many, many exceptionally well qualified buyers that have not managed to find their dream home or investment property, and are ready willing and able to buy immediately. Sellers still have the edge, its a sellers market at any time of the year, and there are still multiple offers in abundance.
Some people think that Los Angeles Real Estate is at the top of the market right now… are we? Who knows, No one has a crystal ball, no one knows what is going to happen in the market next and how long this huge upswing is going to last. I have certainly seen some of the highest price points this year for properties all over Los Angeles. This has been due to the very low inventory and an abundance of buyers competing over the very few properties available.
These are very different circumstances from when the market topped in 2007. Back then anyone could get a loan whether they could afford it or not and were buying properties way beyond their means just because they could! This created a bubble. It is completely different now, lenders are tough, banks are not taking any risks, so it’s hard to qualify! This means the buyers out there are strong and well qualified and there’s lots of them! So while I don’t think we are going to crash, the market is calming down, it’s settling so to speak, meaning it is still growing however at a more normal rate and in line with average growth rather than the huge yearly increases seen in the last few years.
ARE INTEREST RATES GOING UP?
So why are prices settling?
One, because the selling prices are so high, buyers concern of overpaying is now in play, buyers are much more cautious.
Two, the general opinion of mortgage lenders is, that interest rates are going to go up very soon.
This will definitely affect selling prices, as interest rates increase, buyer’s buying power goes down, which narrows the buyer pool. Fewer buyers produce less multiple offers, and prices are not pushed up to the absolute maximum.
SHOULD YOU SELL NOW?
INTEREST RATES ARE STILL PRETTY LOW
The serious buyers are looking to buy immediately
before the rates do go up, and before their buying power goes down.
BUYERS DO NOT WANT TO WAIT!
Even more so if the buyers lost out on properties in the summer they are even more eager than previously and won’t hesitate to jump. Buyers are now more open to compromise, as they are being priced out of the market.
There is not a lot of competition of properties for sale. A good house priced right will sell very fast and homes are still reaching high price points.
MANY WELL QUALIFIED BUYERS
There is still an abundance of well qualified buyers out there still actively looking to purchase before the holiday season starts, and looking to move in before the holidays.
So if you are considering selling now but wondering if you should wait until the spring, I would say, why wait? No time like the present- While the market is still healthy and strong!
Property prices in Los Angeles have increased over 50% in the last 5 years, take advantage of that huge increase and enjoy the spoils.
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