How is the Real Estate Market?

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There's a lot of speculation that goes into people's various predictions of the Southern California real estate market. Some say that the market has "peaked", while others say that, "home prices are still rising with no end in sight". And some are left questioning, "could both be somewhat true?" These are the thoughts that one could be considering when deciding whether or not to make a move in the real estate market. Beginning your journey through the buying or selling process can be overwhelming in and of itself, so having the answers to some of these questions will help to put things in perspective and enable you to confidently move forward in your action.

"The Market Has Peaked"

This refers to the highest point that the prices of houses have risen to in a specific period of time. This statement could be true, but the truth is we don't yet know if the housing prices are at their peak yet. They could continue to rise or they could start falling. There are quite a few variables to be considered when deciding if houses have hit their highest point. I believe the best way to know this is by looking backward. You can see it in hindsight where the housing prices peaked within a certain period of time. But use this only as a relative measure to the many other factors that should be at play in your decision on whether it's the best time to buy or sell real estate.

One important variable that might help you to see things more clearly are the interest rates. The interest rates definitely have a crucial impact on the housing market. You will want to keep an eye on this as the rates can sometimes price you in or out of an area that you may have your eye on.

"Housing Prices are Still Rising"

Bottom line is, in a "normal" real estate climate, housing prices will always rise year over year. There have been few exceptions to this rule, but far and away houses gain value each year. If you look at any standard housing market table, you will be able to see that as far back as you can get reference for, housing prices tend to go up. Typically about 11% on average. There have been some slower rising years, being 5% or 6%, but nevertheless you will eventually see return on your investment in the long run. Like every investment, it has it's ups and downs, but generally speaking, investment in real estate will be a safe place for your money.

In addition, there are other variables that may help to gauge where the market is currently. A big consideration is in the law of supply and demand. When there are less homes available for purchase on the market, seller's can demand higher prices because there's more competition. Conversely, if all of a sudden people start putting their houses up for sale, so much so that there are more homes on the market than buyers, that will drive the prices down. A good real estate agent will be able to educate you on what the specific neighborhood homes are selling for in your area. In doing this, it will help you to get an idea of how much you will pay or what price you will need to list your house at so it will sell in an appropriate period of time.

Although it is important to consider these questions when thinking about a move in the real estate market, the number one variable for timing is YOU. When the timing is right for you and your family, we would love to help you through your process. Call us anytime for more information about your real estate options in today's market!

You can also visit our website: http://joshandshellyrealestate.com/