Our Current Market
Well, it’s been an exciting year for Susan and me! It was just about 12 months ago that the reality of what was to come finally became real for us. We were planning to go to Palm Springs, as we have done for many years, to watch the Indian Wells Tennis Tournament. It was abruptly cancelled, the first of many such occurrences.
It seemed within days that the rest of our world also started being cancelled. We lost 8 of our 9 open Expert Witness Cases, and many buyers and sellers put off or cancelled potential real estate transactions we were planning. There’s no way of knowing how many of our potential clients changed plans we were never aware of.
That was then, this is now. So, what is happening now:
- The courts are open (even tennis courts) and we are back in the Expert Witness Business
- The real estate market has rebounded in many ways:
- Interest rates dropped to their lowest point EVER in our history. They are slightly higher now, but still at or below 3.0% for 30-year fixed rates
- Values seem to be increasing daily, with year-over-year increases of 10% or more
- Houses are selling in multiple offers at or above asking price in all price ranges
- Inventory levels continue to be very low, which exacerbates the high prices and multiple offer situation.
And what can we expect:
- All “hot” markets eventually turn.
- The three factors that will most effect that change
- Interest rates-if rates increase demand will drop
- Prices-Again as prices continue to increase, more sellers will enter the market, which will slow appreciation
- COVID-19-This is the big intangible. It affects jobs, cash flow, emotional stability, so much more. As the health situation changes, we will probably see more people entering the real estate market, which will have a significant effect on values and activity.
What to do now:
- Easiest answer-If you have a house you want to sell, sell it now!
- If you need to replace that house, it will be a little harder, but your personal needs should outweigh the marketplace. If you need that extra bedroom now, go for it.
- If you are a buyer, today’s interest rates make buying a true “no brainer” GO FOR IT!
Call 949-500-6365, email Frank@FrankDiLauro.com, website www.FrankDiLauro.com