That’s a great question and here’s what I see. From the end of February to the end of July this year, there has been a 36% increase in the number of homes for sale in the Greater Antelope Valley Association of Realtors Multiple Listing Service (GAVAR MLS). This is a pretty big jump for a 5-month period. The good news is, the number of pending homes (homes with an accepted offer) in escrow has pretty much stayed constant… Meaning… the number of homes that are coming on the market (for sale) and off the market (pending) is still very active. If the number of pending dropped, then we would see an even larger percentage increase in the number of homes for sale.
You might think: so Ron, with the strong economy, how come the housing inventory is increasing? And I say… getting back to the original question, the reason the inventory is increasing is two-fold. 1. Overall, home prices have gone up so rapidly over the past 4 years that the first-time buyer market has shrunk. In the past, first time buyers made up about 32% of the market. (data from the first five months of this year are not available at this time, this is a personal observation). And 2. We are getting real close to the Federal Reserve lowering their Federal Funds rate… which currently stands at about 5.25-5.50%… and is at a 23 year high. In my opinion, many buyers are on the sidelines anticipating a rate drop and once the interest rates drop, they’ll be back in the market. Here’s the caveat, if the federal reserve does not lower rates, the housing inventory will continue to grow and this will definitely put downward pressure on housing prices.
When is the Best Time to Sell?
That’s another great question! The answer is… It depends. It depends on what you really want to do. Do you want to move closer to your family? Do you want to move because of a job opportunity? Do you want to sell to buy a bigger home because you’ve outgrown your current home? Do you want to sell because all your children are grown and gone, and you no longer need a 3,000 sq. ft home (nor want to clean it). Then the time is now…. Because why wait? Timing the market is nearly impossible and if one does actually sell at the very top of the market, it was likely more luck than anything else. Life is too short! I say, don’t wait to do what you really want to do. Enjoy life, be with your kids, downsize, upsize, take that job! One thing is for certain, you can’t get your time back.Fun Facts for August: 1. The sandwich first got its name on Aug. 6th, 1762, and named after the Earl of Sandwich. 2. August is national peach month… Eat a Peach Day is the 22nd and National Peach Pie Day is the 24th. 3. August Birthstone is Peridot and the August Flower is Gladiolus.
