Sellers! What are you waiting for?
Today we share with you an article that senior vice president and managing
officer of Intero, Alain Pinel wrote entitled, Time to
Sell, speaking to his confusion as why people who are thinking about
Selling their homes are hesitating. Based on the numbers that have been recently
released, especially for San Francisco, and the Bay Area as a whole, it would be
downright silly not to list your home right now! If you’re thinking about
Selling your home contact the Dawn Thomas Team.
“Explain to me why are we are still suffering from an acute lack of listings most everywhere in the US? As far as I am concerned, the best time to put a house on the market has been every single day of every month for the last 12 months or so. Sure prices are still edging upwards, but unless you are looking to buy down, you are going backwards: your next home will cost you more, incrementally speaking, than what you could gain by postponing the sale of your existing home.
It does not take a math major to figure this out. Today, if we can reasonably assume that a $900,000 property appreciates at the rate of 10% a year, you stand to put another $90,000 profit in your wallet. Nice. The problem is that your next home, at, say, $1,500,000, is appreciating even faster in this hot move-up market, somewhere in the neighborhood of 15%. That translates in an added cost of $225,000 or nearly $19,000 a month on average. It’s a no-brainer.
A few weeks ago, the Wall Street Journal published very relevant and thought provoking stats in their Weekend Investor section. These stats, which derive mostly from ZipRealty, CoreLogic and the National Association of Realtors year-over-year studies, make a pretty compelling case for listing now. Judge for yourself.
Let’s look, as ZipRealty did, at 3 objective indicators of the market conditions: Number of Homes listed, Median Days on the market, and Median selling price. The study shows very graphically how cities like San Francisco, DC, Seattle, Austin, Chicago, Orlando…fared as of the turn of the new year compared to the same time in 2012.
1- Number of homes listed:
“Explain to me why are we are still suffering from an acute lack of listings most everywhere in the US? As far as I am concerned, the best time to put a house on the market has been every single day of every month for the last 12 months or so. Sure prices are still edging upwards, but unless you are looking to buy down, you are going backwards: your next home will cost you more, incrementally speaking, than what you could gain by postponing the sale of your existing home.
It does not take a math major to figure this out. Today, if we can reasonably assume that a $900,000 property appreciates at the rate of 10% a year, you stand to put another $90,000 profit in your wallet. Nice. The problem is that your next home, at, say, $1,500,000, is appreciating even faster in this hot move-up market, somewhere in the neighborhood of 15%. That translates in an added cost of $225,000 or nearly $19,000 a month on average. It’s a no-brainer.
A few weeks ago, the Wall Street Journal published very relevant and thought provoking stats in their Weekend Investor section. These stats, which derive mostly from ZipRealty, CoreLogic and the National Association of Realtors year-over-year studies, make a pretty compelling case for listing now. Judge for yourself.
Let’s look, as ZipRealty did, at 3 objective indicators of the market conditions: Number of Homes listed, Median Days on the market, and Median selling price. The study shows very graphically how cities like San Francisco, DC, Seattle, Austin, Chicago, Orlando…fared as of the turn of the new year compared to the same time in 2012.
1- Number of homes listed:
- San Francisco: -60% (can you believe it?)
- DC: -26%
- Seattle: -18%
- Austin: -21%
- Chicago: -33%
- Orlando: -22%
- San Francisco: -47% (no surprise considering the unbalance between supply & demand)
- DC: -32%
- Seattle: -28%
- Austin: -37%
- Chicago: -23%
- Orlando: -8%
- San Francisco: +38% (that’s what you get when you plug in the 2 above factors)
- DC: +9.5%
- Seattle: +12%
- Austin: +15%
- Chicago: +15%
- Orlando: +20%
This blog is courtesy of The Dawn Thomas Team who is an
award-winning Real Estate Agent team at Intero Real Estate Services in Los Altos
650-701-7822. We help nice people with selling and buying homes from Palo Alto
to West San Jose!
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