Do You Remember What a Crazy Year it Was?

What a wild ride it has been this year! When we began 2013, we had seen less than a months’ supply of homes, multiple offer scenarios and a bit of recovery in the market. Boy, did things change during the first quarter! We saw home prices appreciate 15-20% and by the end of the quarter, we saw pricing structures similar to 2004-05. In fact, we sold two homes last year that were priced higher than they were in 2005. Needless to say, there has been amazing recovery in the market and things seem to remain strong.

There are still also droves of buyers flocking to the market and not nearly enough properties for all of them. However, inventory levels are increasing and we are starting to see less and less of the bidding wars we saw in the second quarter of 2013. Prices are starting to rollback and sellers aren’t able to ask whatever they want for a property and get away with it. I can see this trend continue through 2014 and inventory rising in the spring. This may cause price reductions in the second quarter of 2014 which means that could be the best time to sell your home in the coming years.

My prediction is that we will see a 5-15% drop in pricing towards the end of the year as interest rates are predicted to rise to as much as 5.5%. This is how the market keeps itself balanced. For every percent that the interest rates go up, a 10% drop in pricing must occur; in other words, this is to keep the monthly payment the same.

Our prediction for 2014 is a strong first quarter followed by a slowing in the second and third quarters with serious price reductions closing out 2014 as interest rates go up. This means the beginning of the year is a great time to sell your home and if you’re thinking about buying, you want to do so before interest rates go up. Waiting will not be on your side in 2014!

I want to wish you the best in 2014 and if you need anything, don’t hesitate to call. Make it a great day!


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11 Reasons Why You Should Continue to List Through the Holidays!

One of the things we constantly get asked around this time is whether or not you should keep your home on the market during the holidays. Without a doubt, more than any other year, you should be keeping your home on the market. With prices trending downward and the possibility of interest rates going up next spring, it’s definitely to keep your home on the market and get it sold now while prices are still high. Even if interest rates rise 1%, it would mean a 10% price drop in homes.

Below are eleven reasons why you should continue to list during the holidays:

11. By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for less money! This will allow you to sell high and buy low.

10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

9. Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays.

8. January is traditionally the month for employees to begin new jobs. Since transfers cannot wait until spring to buy, you need to be on the market during the Holidays to capture the market.

7. Some people must buy before the end of the year for tax reasons.

6. Buyers have more time to look for a home during the Holidays than they do during a work week.

5. Buyers are more emotional during the Holidays, so they are more likely to pay your price.

4. Houses show better when decorated for the Holidays.

3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means more money for you.

2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you.
And the number one reason why your seller should list during the Holidays …

1. People who look for homes during the Holidays are more serious buyers!

The bottom line is that you should keep your home on the market during the holidays. We look forward to speaking with you soon! Have a great day.

How is the Sacramento/Placer County Market Affecting You?

Today I wanted to talk to you about the market and trends of Sacramento and Placer counties. About a year ago, we had a limited supply of homes with less than a month’s worth of inventory. This was turning the market in the favor of the sellers with multiple offers on properties and selling for above asking price. However, in the last few months the market has begun to stabilize as inventory levels have been increasing. Sacramento County has 2.3 months of inventory of homes and Placer County is showing 2.4-2.5 months’ supply of homes. Also, sellers in the Placer County market are asking quite a bit more for their homes and even the same prices they originally paid in 2005, causing fewer homes to sell and prices to drop.

If you have a home to sell, don’t forget about our Guaranteed Home Sale where we guarantee to sell your home in 29 days or less or we will buy your home! For more information about this great plan, give me a call at (916) 529-5342. If you are looking to buy a home, check out our one of a kind home buying website at http://www.thomasmarchgroup.com/. Thanks and have a great day!