Questions About Today’s Real Estate?
Should I sell now or wait for prices to increase?
We have been waiting for several years to sell our home. We want to retire and move out of state to be nearer our grandchildren. My question is do you think now is a good time to sell, or should we wait? Do you think home prices will continue to rise?
I wish I knew for certain what the future will bring. What I can tell you is that there are fewer short sales and foreclosures. Only two foreclosures in La Crescenta have sold through May (per the MLS). These distress sales had a downward impact on our local real estate values. Interest rates, while still at record breaking lows, have risen, and with each increase buyers have less purchasing power.
The absorption rate determines how the market is absorbing the current inventory of listings. The absorption rate reflects whether the current inventory level is shrinking or growing.
• Buyer’s Market: More than seven months supply of homes
• Neutral Market: five to seven months supply of homes
• Seller’s Market: one to four months supply of homes
The absorption rate in La Crescenta has been under 2% (reflecting a two month supply) this year – an extremely strong seller’s market. Conversely the La Cañada absorption this year has been between 1.76% to 3.05% (reflecting
1 3/4 to 3 months supply – also very strong, but not as strong).
In May 2012, the average price per sq. ft. of a La Crescenta home was $351 vs. May 2013 $394. At some point I believe that the prices will level off; I wish I knew for certain when. But if your goal is to join your grandchildren and move, I think now is the time for you to do so.
Read my blog (LAreBlog.com) I publish detailing housing statistics each month for Glendale, La Cañada and La Crescenta. You can easily keep up with the market trends there.