Wow!
Did we ever have a fantastic year in 2012! And it was almost as if it were
against all odds, with the way the national housing market and economy has been
lately. But we have an interesting run with many buyers enjoying the
marketplace and many sellers seeing viable returns on their home sale as well.
2012 Was a Great Year!
The
Dave Kibbey Team this year will close on a total of more than 80 properties in
2012 with a sales total amount exceeding $30 million. We look forward to the
coming year and anticipate much activity on both the buying and selling sides
of the fence.
Lots of Real Estate
Activity Expected in 2013
There
has been much pent up demand given the election from just a couple months ago
and also the state of our economy – so we feel there will be a significant
increase in real estate activity come spring time and beyond. In fact, high-end
properties will likely also pick up in our marketplace.
There
are some changes that we are not entirely sure of yet, however, such as changes
in tax cuts and also some government programs that do not appear to be extended
past 2012 (for example the Debt Forgiveness Mortgage Relief Act). To learn
more, contact one of our team members today.
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As
always, we invite you to contact us with all your real estate needs – whether
buying, selling or investing in a properties. We look forward to helping you
achieve your real estate goals in the coming year!
One
of the first things I discuss with prospective sellers is the idea that there
is a certain absorption rate that must be considered when looking at a market
in which to list a home. In essence, absorption rate is a tool used to
evaluate the supply and demand of the currently available homes on the market.
The reason this has an impact of your home’s selling success is clearly because
it will show a correlation as to how much in demand your home may be in that
neighborhood and how quickly other similar homes are selling.
To
understand this further, I have broken down our areas of coverage (Rancho
Mirage, Palm Desert, Indian Wells and La Quinta) into price points and
explained each as follows:
Median
Price Point of Up To $500,000
At
just 4.2 months of inventory on hand, up from a very low supply of 2.9 months
in May of this year – we are seeing homes in this price range selling very fast
particularly when they are priced right or even priced slightly above recently
sold values. Depending on your motivation level to sell your home, it could
take that much time (4.2 months) to sell but it is critical to price your home
appropriately.
$500,000-$1,000,000
Price Range
There
is a significant difference in inventory levels with this mid-level price point
and it shows in the 11.9 months of supply currently on hand. This number is
down from just a year ago when the number of available homes in this range on
the market was 14.9 months worth. In other words, if no new homes were to come
on the market in that time frame it would take 14.9 months for all those homes
to sell assuming market conditions remained the same. In this case, pricing
below the market may be needed to get your home sold quickly but for the most
part it is important to remain patient with the market.
$1,000,000-
$1.5M
This
price bracket of homes presents a greater challenge since there are currently
over a year and a half worth of homes on the market, up barely from a year
prior. Since homes in this market are moving at a snail’s pace it is important
to identify your motivation level and if the need to sell quickly is there then
you may need to price very aggressively and be willing to adapt to the market.
Lowering your expectations is key to selling success for homes in this price
range today.
$1.5M
and Up
The
luxury home market traditionally has a very slow absorption rate and this year
is no exception. With a five-year supply last year and a 20% improvement to
just 4 years worth of available homes this year, things are selling in this
market but very slowly. The hit and miss results can be very discouraging but
it is important to keep in mind that once again aggressive pricing strategies
and the willingness to be open-minded when it comes to adapting to the market
will make a difference. Typically, the higher the inventory of homes in any
price bracket the lower the prices seem to be driven – therefore we strongly
suggest selling now rather than rely on an uncertain market in the future.
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If
you would like to explore the options for your home, regardless of price point,
contact us today for a customized consultation on how we can help you achieve
your real estate goals. We look forward to serving you! Call 760.774.0105
today!
Anyone that is watching the real estate market knows that interest
rates have never been as low as they are today. In fact, this is a historical
occurrence that keeps on repeating itself month after month after month. There
is no telling how long the Fed will keep our base rate down but for now, we’re
in great shape. Today, we meet with Ed Lotstein from the Franklin Loan Center to talk about some of the trends we are seeing in
today’s marketplace with respect to mortgage rates and loans.
Record
Setting Historic Lows Present A Phenomenal Opportunity for Buyers
On 30-year fixed rates loans for conforming loans – we are seeing a
typical rate of about 3.125% with a point on loans up to $417,000. Loans with
zero points are coming in at an interest rate of 3.375%. Government-backed
loans such as FHA or VA loans have mortgage rates in the low 3s – once again an
unprecedented historic low. Jumbo loans in the amount of $700,000 to $800,000
are reported at below 4% at the present time.
All these rates are lower than any of us have ever seen in our entire lifetimes
let alone careers.
The take away message is that now is a great time to buy. If you have
been on the fence about whether or not to buy, the low cost of borrowing offers
plenty of motivation. When you combine the relatively low housing values with
low interest rates, it is a great time to get a good deal. In fact, I strongly
suggest meeting with your loan officer to work out the numbers; you will be
surprised at how much the savings add up once you pull an amortization
schedule. When buyers lock in the phenomenal rates available today for 30
years, or even 15 year terms, the savings compound into thousands of dollars.
Refinances Are Allowing Existing Homeowners to Save
Hundreds
In addition to new purchases, the low interest rates are also
benefitting millions of homeowners with some equity in their properties. If
your mortgage is currently at anywhere above 4%, we strongly suggest meeting
with a loan officer to assess your financial situation and discuss refinancing.
Financing Available for Canadian Citizens in the
United States
While on the topic of mortgage financing and phenomenally low rates,
one thing that many people do not realize is that financing is available for
citizens of Canada that choose to purchase properties in the US. In fact, there
are hardly any countries that allow foreign nationals to obtain such financing.
There are a few requirements that are different than the standard finance
process for American citizens. Canadians would require a 30% down payment on
the property and the process would entail a full documentation loan where
detailed documentation of financials and tax returns would be required among
other things.
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Regardless of what your real estate needs are these days, one thing is
certain – the market today is ideal for buyers and investors. We invite you to
contact us today for more information about how we can help you achieve your
real estate goals.
During the past five or more years things in the real estate world have
been challenging to say the least. Particularly in harder hit markets, sellers
have been wary about putting their home on the market only to find that there
wasn’t enough interest in the property.
But things have drastically changed over the past year or so. Today, we
are looking at an inventory level of just 3.7 months. What that means is that
if nothing were to change and no new properties were to be listed on the
market, it would take that much time for all the current available homes to
sell. Right now, we have 3,100 homes on the market – our lowest level in six
years!
How does this translate to you as a homeowner that might want to sell?
It means that there could not be a better time to sell your home. With
decreased inventory, demand automatically rises. And when we have higher
demand, we see sellers getting higher returns on their properties. There are
even cases with sellers getting multiple offers these days, especially for
homes that are priced right, located in desirable locations and in good condition.
The most important thing to determine initially is your level of
motivation to sell the property. Are you listing the home due to job
relocation? Are you interested in taking advantage of the current low mortgage
rates and want to buy a bigger home? Is downsizing the goal or are you just
wanting to get in on the action before prices start to appreciate as they have
been predicted to do so in the coming months and years ahead?
Regardless of what your reasons are, it is essential to evaluate the
current market conditions. And what we are seeing today is an ideal environment
for both buyers and sellers alike.
If you would like more information about our marketplace or if you want
to discuss your options and learn of how we will market your property to get
you top dollar, we invite you to contact us today at either 760.774.0105 or via
email at dave@teamkibbey.com.
The
hardest thing to do is to sell your home – unless you are prepared. The
difference is with whether you are prepared to do what it takes to make your
property stand out. By following these five tips, you can make sure that your
home gets plenty of attention in the buyer circuit – ultimately selling quickly
and for top dollar!
Pay Attention to Curb Appeal
So many
homeowners neglect to realize how curb appeal can either make or break a
first impression. The very first thing buyers see as they drive up to your home
is the landscaping and front porch/entryway. Make sure you take the time to
clear up any unruly bushes and shrubs, plant colorful flowers and remove extra
clutter in the garden or lawn area. A little effort here will go a long way.
Pretend Your Home Will Be In
a Magazine
Before
you have your home photographed or set up for showings, take care to de-clutter
extra things and remove most traces of personal belongings. By keeping a
reasonably neutral décor, buyers will be able to visualize their own belongings
in the space and will be more inclined to wanting to make the space their own.
Spruce Up the Walls With Some
Color
A little
color goes a long way. And the best part is that it doesn’t cost too much. A
fresh coat of paint changes the entire look and transforms a room into
something completely different, new and clean. It’s also a great way to renew a
room that might have pet or smoke smells. When painting, be sure to use neutral colors for the most part so that
buyers can imagine their own style in the space.
Follow the Footsteps of
Potential Buyers
Flooring
is an often overlooked area that is easy to fix and can make a huge difference
in the apparent quality of a home. Check to see if there are any cracks or
crevices in tiles and repair them if necessary. Also, have grout professionally
cleaned to make tiled floors look new. Wood floors and other surfaces should
also be professionally cleaned.
Steer Clear During Showings
Prior to
showings, make an effort to open all window coverings to let in as much light
as possible. Also, clear up any untidy areas and make as much of the home
visible as possible. Now’s the time when buyers will want to see all that your
home has to offer and unless those areas, features and amenities are clearly
visible with ample light and clear open pathways, buyers can easily miss out on
the very things that might sell the home had they seen them.
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These
are just a few of the tips we have to suggest to our clients. If you would like
a more detailed, customized walk-through of your property – we invite you to
contact us today! We’d be happy to serve all of your real estate needs and look
forward to hearing from you.
