Sales continue to fall
Home sales in Southern California continued to fall sharply from December to January. Experts were hopeful that the historically low interest rates would drive sales higher.
Many real estate professionals are left asking: What is it going to take to get home sales volume moving higher? If it's not low interest rates, what is it? This question has left many people scratching their heads.
If you have been waiting to sell your house, is now the time?
December 2014 to December 2015 saw almost a 30% decline in number of homes sold, according to CoreLogic data. And January 2015 sales were down over 20% from the average for January. Spring 2015 will be interesting to watch. Will the typical Spring activity kick in? Will it be easier to sell your house? Or will the market continue to decline? This month, make it your goal to figure out what you should do with your house.
If you are a homeowner with equity in your home and are timing when to sell your house, this Spring may be the time to pull the trigger. The median price for sold homes in Souther California was $409,000, which is over 1% lower than December 2014. The peak of the median price for sold homes was reached last August, so we may be seeing a softening that is going to continue.
Real Estate is a Cycle
Let's not forget the horrible housing crisis that occured not even 10 years ago. Real estate is a cycle and even though we've seen a lot of recovery in recent years, don't forget that there will inevitably be a correction. Real estate goes up and down. When, how and to what degree is what we try to anticipate. We have to figure that the "artificially" low interest rates will have to come to an end or the US economy is somehow going to pay dearly for its efforts to stimulate the housing market. We cannot ignore the signs this time, as we so happily did during the boom.
Sell Your House Before the Next Market Correction
Whether we are seeing the beginning of a downturn in the real estate market or we will have another few years of small gains or losses, if you are planning on selling your house, don't wait until it's too late. Make sure you sell your house before the next market correction. Stay ahead of the masses and you will be happy you did. If you are thinking about selling your house, it's probably time to do it.