Have you thought about selling your investment or residential property over the last five years? Here are five reasons now may be the time.
1. We are experiencing selling price increases, so the market may be much different now compared to when your property was last for sale. Here are some statistics, according to California Regional Multiple Listing Service data: Long Beach average home prices rose by 6.6 percent, and the median home price rose 8 percent, over the last 12 months through December 2016. The California home price average is expected to increase by 4.6 percent in 2017.
2. The inventory of available homes for sale continues to decrease from what it was just one year ago, making the competition among sellers considerably lower. The local market as of December is at 1.6 months or less of inventory (6 months is the traditional norm).
3. Mortgage interest rates are still at record lows, in December only slightly higher than the lowest of all rates which was also in 2016, making homeownership more affordable and bringing new buyers into the market. And where are sellers moving to? There were over 24,000 sales in the top 50 master-planned communities in the country in 2016, an increase over 2015.
4. Rental rates are still rising dramatically for tenants. And if you bought a rental property after 2008-2010, you probably have some price increase in case you're thinking of a 1031 exchange.
5. While we cannot predict the affordability of the 2017 market completely, more millennial buyers (under 34 years) and buyers returning to the market from years of renting are entering the homebuying market. I handle the headache and also work closely with clients in selling homes for out-of-state owners. You can even leave your tenant in the home in many cases.
Contact me for a free valuation of your property or to find out what makes me different from my competition.