10.
The Days On Market for properties has been paused by the computer system, THEMLS.
This is a crucial indicator that buyers look at when evaluating a property. If a property has 30 days on market and no offers it’s time to rethink the price.
Currently with the DOM paused you can have a property on the market and its going to look like it just came on the market
9.
Property values may decline.
Property in the Southern California area has been blessed with terrific appreciation over the last 10 years, and as we saw in 2008-10 property also goes down in value.
8.
Inventory is low right now
Most areas have less than 3 months of inventory. As the crisis started many homeowners have taken a wait and see approach.
The months of inventory level is determined by taking the number of homes that typically sell in an area in a month and then using the number of homes currently on the market dividing by that number. Anything under six months of inventory is considered a sellers market, and if there are so many homes for sale that it would take more than 6 months for all of the homes currently listed to be absorbed, then the buyers control the market.
7.
Properties are still selling at pre-pandemic prices
As we look at the properties that are selling every day, typically about 50 or so in the Los Angeles area, over all price ranges, the closings are not showing a significant price drop. Yet.
If people stay unemployed, ultimately our foreclosure inventory will increase, this forces the price downward, as banks liquidate those properties.
6.
Listen to your gut
If your gut is saying “lets sell. I want out of this situation. “ contact me I would be happy to offer any honest data that I can find about what properties like yours are selling for, how long its taking, and what we can do to make it a safe and healthy experience for you and the buyers. We have tech like virtual tours and property videos that are getting thousands of views online by buyers who want a new place.
Fun fact: home searches have actually increased as people flock to social media for entertainment.
5.
If you can’t afford it anymore.
If your circumstances are changing. Layoffs, unemployment, and divorce are facts of life right now. As more people default the property values will decline.
The time to sell is now while you can capture your equity.
4.
The roads are quieter
If your home is on a busy street, this is a great time to sell. While traffic is less.
The buyers can experience how nice the neighborhood is without all the noise.
3.
Wells Fargo/Chase/Bank of America have stopped Home equity loans and cash out refinances
The banks have many internal economists and frankly its pretty obvious what comes next. They have stopped lending on home equity because they think it’s gone and if they lend it, they won’t get it back. (And they’re probably right)
Source:BANKRATE https://apple.news/A-6uLDX7PQEuBFcRjuVILDg
2.
Forbearance = Foreclosure
I understand what people want the Govt. Forbearance plan to be.
The want everything to be ok. They would like to just stick the payment on the end of the loan.
So Simple. So easy.
From my research for my own properties, this is not what this program is, far from it. In a few months all the payments will be due plus the new payment plus interest.
1.
Take a profit
An intelligent investor I know said “ Never be ashamed to take a profit”.
As I talk to many homeowners, I hear things like “When its worth 3 million I’ll sell”
Dont let the perfect be the enemy of the very good
If you had waited till Tesla stock got to $1000 you would have missed selling it at $968, its currently at $780.
Dont set an impossible price target for your asset, if your situation calls for considering selling lets do it.
Andrew Robarge has been an agent with Keller Williams Hollywood hills for over 15 years, serves on the Agent leadership council, his brokerage is #1 for Sales volume, #1 for dollar volume of homes sold, and #1 in Agent count.
Cell 310-621-7672
Andrew@epicpropertygroup.com