Steven Keefe, Broker/Owner
Almost every day at least 3 times per day I am asked this question.... "How is the market?" Good question, often there isn't a simple answer to this very simple question. Some Realtors will answer "Fantastic" or "Super". I guess its part of their training, but it hardly instills any level of credibility.
The answer is that there is no single answer to when a person should take action. Are you a buyer or a seller? If you are the latter... do you have any equity, or is there a reason why you need to move? Are you looking to buy a fixer upper, entry level home, or million dollar mansion? What neighborhoodare you most interested in? Is it a primary residence, or an investment property? Are you moving up or down? I could go on and on.
The number one rule is that the real estate market is "Local". National media is projecting a lot of good news in the real estate market. Locally, we are experiencing some of the same as the rest of the country.
In 2012 we experienced an 11% increase in the number of home sales over the previous year as did the rest of the country. Values remained stable reversing a trend of up to double digit declines in value over the last 5 years. This is a good sign. Nationally some experts are forecasting significant increases in median price what we should expect on the mountain is a modest 3-4R% increase.
We are experiencing as the rest of the Country is a shortage in inventory; however, our shortage is not as sever as is being reported in many other Southern California markets. Certain price ranges are feeling the pinch where others there is a lot of available inventory.
We have seen a sharp decline in the number of bank owned (REO) properties. As the availabilty of distressed properties narrows, we will see a higher percentage of "regular" sales which will in turn also drive up values. We have another 2-3 years of pent up inventory for the distressed sales.
There is a trend developing locally that homes that come on the market are selling quickly, sometimes within the first 30 days, while others languish on the market for extended periods of time. This primarily has to do with pricing. If a home is priced correctly in the market, it will sell. If it isn't, buyers are moving on to the property that is priced correctly.
The good news for us is that the market is showing signs of more transactions, we will see some modest increases in values this year so we are on the right track.