CALLING ALL SELLERS

It’s not often that we see such significant buyer activity in January like we’re seeing right now.  We’re back to multiple offers and over asking sales when homes are priced right. Why?  In short – the recent reduction in interest rates.  

Buyers sitting on the sidelines watching the rates go up 11 times over the past 18 months has been a challenging experience for those who wanted to invest in our market.  Now that rates are on the decline, with speculation of them going down even further this year, this enables today’s buyers to purchase their home now and refinance into a lower mortgage later. Great News – they’re all in!

To say that last year’s sales were mediocre would be an understatement.  This graph shows sales between 1999 and 2023.  Last year was the lowest on record, with 2007 a close second (the mortgage meltdown years).  With rates approaching 8% in the late fall, we wondered how long it would be before we would return to a ‘normal’ market.  Then January came and we are now seeing rates in the mid-6% range.  It’s a new day.

There’s only one problem

Where are the sellers??  I get it that people most times want their yards to look pristine with flowers blooming and leaves on the trees but I’m here to tell you that your buyer is anxious now!  With very little to choose from, supply vs. demand would definitely play in your favor.  From time to time we see ‘windows of opportunity’ that don’t last long.  Depending on how quickly the spring market hits – that’s how long this opportunity will last.  If you know me, you know that I’m not a scare tactic Realtor. I know that there are life events such as death, divorce, job transfer that cause people to sell homes throughout the year, but I also know that people rely on these types of windows to make a move.  Can I just tell you that IF I were planning to sell my home this spring, I would seriously consider doing it now.  Less competition is always better for a seller.  This ends my public service announcement about the January market.

As we start the New Year, I want to be sure to remind you of a few things 

First, if you own a home, is it in a trust?  It’s so important that your assets and especially your home be held in your trust.  This prevents your loved ones from having to go through the arduous task of probate upon your death.  I’m not saying you’ll pass this year but seriously, it’s important.  If you need a trust attorney referral, call me.

Second, are you aware of Proposition 19?  This is the tax law that allows you to transfer your existing tax base to a new primary residence.  Since 2020, the law has changed regarding how this proposition can benefit you.  Here are the most significant changes:

• There’s no limit to the sales price of the replacement home
• You no longer have to stay in the existing county
• You can take advantage of this rule up to three times
• You have two years from the close of your sale to make your purchase so you can sell, travel then buy!

Here’s the website to find all of the specifics but this can be a huge savings for those over 55 who have lived in their existing primary residence for years and yet, perhaps the home no longer meets their needs. If you buy at a price that’s the same or less, taxes won’t increase!  If you do spend more, you simply pay the difference.  All good news!

https://www.boe.ca.gov/prop19/

For all of your real estate needs, don’t hesitate to call me!