Over the last six months, we’ve been talking about a lot of uncertainty in the real estate market. We’re seeing leading indicators that there might be another shift coming. Over the last six months, we’ve been talking about a lot of uncertainty in the real estate market. We’re seeing leading indicators that there might be another shift coming. Here is an update on the Southern California housing market.
First things first, rates have come down.
Number two, demand increased beginning on December 26th, BEFORE interest rates were reduced. Now that rates have gone down, we are anticipating another spike in demand in the near future. Our agents are going on MORE appointments and have MORE conversations in the new year than over the last few months.
Previously, a lot of our buyers have been telling us they were going to wait for more houses to come on the market at the beginning of the new year, but inventory has fallen flat. New listings come on the market all the time, but since demand has ticked up, days on market have gone down, and inventory is balancing out to be flat while sellers are giving concessions to ensure their home sells. What does this all mean?
Experts believe that Q1 – January, February, and March – may be the last opportunity for buyers to get a great deal, especially if interest rates continue to fall. Buyers are used to the current rates and understand that there’s a high likelihood over the next two or three years that they’re going to be able to refinance a much better loan than they’re getting right now. Either way, buyers are out there shopping and buying homes right now.
If you’re sitting on the fence waiting for the perfect time to buy, some people are making the argument that it’s right now, and others are making the argument that you missed that. What is the right answer? We can only tell you what we’re seeing, which is a lot more appointments, a lot more buyer activity on websites, lower rates, but fewer homes on the market that are selling faster, all of which are leading indicators of a slightly more aggressive market, so now might be the time to jump on as a buyer or a seller.
If you’re a seller planning on selling now or in five years, working on your house right now is way more affordable than it was two years ago. If you have a small project that you don’t want to move for two years, now might be a good time to start it. There are people out there that are looking for work, whatever you’re planning on doing.
Whether you are looking to sell, buy, upsize, downsize, or trade in, contact us to be connected with an agent that is best for you and your situation.