When should you sell your house?

Selling your home is one of the biggest financial decisions you can make in your lifetime.  There can be a lot of hand-wringing to time the market perfectly, so I wanted to give you some helpful information about the current real estate market in Los Angeles so you can make an educated decision on when you should sell your house.

Recession in 2020?

Average economist forecasters are predicting a 33% chance of a recession, but Goldman Sachs’ has lowered that to a 20% chance. Selling in a good market is always beneficial to sellers as properties can command top dollar.

“We expect mortgage rates to remain low over the next two years, averaging 3.8% in 2020 and 2021.”-Freddie Mac.  With mortgage rates near historic lows, buyer purchasing power will stay strong.   If mortgage rates start to climb, this will significantly impact a buyer’s ability to qualify for high valued mortgage.

The biggest story in the 2020 Los Angeles real estate market is the lack of available homes for sale.  You know what they always say about supply and demand?  Well, this current scenario is definitely helping sellers get top dollar for their properties. “As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier,” said George Ratiu, senior economist at realtor.com. “With housing inventory across the U.S. expected to reach record lows in 2020, we expect to see this trend continue into the new year.”

The economy is good, the inventory is low, mortgage rates are low, buyer demand is at an all time high.   All of these signs are pointing to a strong sellers market right now.  It’s still important to speak to a professional about pricing your home.  Just because all the signs are there for a strong sellers market, it doesn’t mean a buyer will overpay for a property. A majority of buyers are getting financing on their purchase which means an appraisal will need to be performed on the property.  An appraiser will look for the last three months of sales in the subdivision to justify the contract price, and if they can find any comparable sales, the property won’t appraise.   In certain parts of town, buyer are paying above the asking price, but not everywhere.   I work and understand all of these factors to help you with the sale of your home.   I would be happy to meet you and give you a free analysis of your home and my recommendations for staging and pricing.

Please feel free to call me at 213-268-6832 and we will get the best strategy to get top dollar for your property.

Felipe Crook

Realty One Group United

Cell: 213-268-6832

DRE#02047440