Through out the years you’ve probably heard the terms “It’s a buyers market.” Or when inventory is low “It’s a sellers market.” But what if I were to tell you that right now it is both a buyers and sellers market. Wait, what?
The interest rates as of today, April 17th 2016, are the lowest they have been for the past 3 years. This mean the affordability rate is increased, meaning more buyers on the market. This translates to a great buyers market. Prices are still lower than they were before, banks aren’t creating an artificial market. Values are increasing, but not with giant leaps. It’s gradual. It’s “real”.
For sellers, home values are up from where they were after the crash. In fact, in some cities, home values are past where they were in 2008. Now with sellers hesitant to sell, it’s creating low inventory. With low inventory on the market, this will push the demand up. We all learned in economics when a demand for a good increases, so does the price. So home values will continue to increase. This makes it a great sellers market.
How long will this last?
More than likely until the banks raise the interest rates higher than 4.5%. We will then see a decrease in buyers, a decrease in demand and a decrease in home values.
Of course in life, there are ups and downs. Don’t wait too long to take advantage of this unique opportunity!
The charts above depicts the past 12 months and inventory levels on the market for Monrovia, Duarte and Covina.
If you have a local Southern California town you are curious to see the market stats, please send me an email at realtorashleyhowie (at) gmail.com. I’d be happy to send any city in the area!
Below are the stats for Los Angeles County. It’s a big difference.