If anyone tells you that selling a home is simple or easy, they just aren’t telling you the truth (or not all of it anyway). However it turns out, it’s not something you could ever call fun. But whenever you undertake a difficult task, knowing what to expect beforehand helps immensely. So here are 4 facts you need to know about the current real estate market before selling your Los Angeles home.
1. Prices Are Still Rising, But Slowly
In 2017 and through early 2018, home prices shot up an amazing 10%. And although that price increase has slowed considerably, home prices will continue going up throughout this year. In addition, there is and will be only a very slight increase in the number of homes for sale. This trend can be attributed chiefly to rising mortgage interest rates and general economic uncertainty. As a result, many potential buyers remain undecided about taking the plunge.
This aspect of the current real estate market means that selling your Los Angeles home now could net you more money. But keep in mind that while prices are still increasing, you may be looking at fewer offers. And that means you’ll have to work harder to stand out from the competition and a good agent will be even more critical.
2. Interest Rates Are Going Up
After several years of remaining steady, mortgage interest rates are on the rise, now approaching 5% or a 30-year mortgage. The good news in this is that rising interest rates indicate a healthy economy. More people are willing to borrow and spend, and much of that borrowing/spending activity is in the real estate market.
Still, as we mentioned above, the current real estate market, with respect to rising rates, may mean that in selling your Los Angeles home, it will be on the market longer, and you may receive fewer offers. Although economic activity is strong, people are a little more hesitant to take on a big mortgage when interest rates are going up. Again, aggressive marketing and working to stand above the competition will be required.
3. Most Home Buyers Are Millennials
A fairly new development in the current real estate market is that the majority of home buyers are and will continue to be Millennials. Today, more Millennials than Baby Boomers and Gen-Xers are stepping into home ownership, particularly as first-time buyers. This means, then, that selling your Los Angeles home will involve marketing tactics adapted to target Millennials and their preferences.
With this aspect of the current real estate market in mind, here’s what you will need to do:
- Invest in plenty of quality listing photos (maybe even aerial photos) and videos for those online listing sites. Almost all Millennials will do most of their home shopping online and will probably visit your home only at the very end of the process.
- Emphasize the quality of the living space, especially sustainability and usability, rather than concentrating on mere size.
- Showcase the proximity of amenities and walkability. Millennials are looking for the feel of big city life, yet at a more affordable cost.
- Emphasize ease of maintenance and energy efficiency. Smart appliances are a big plus, so be prepared to either install them or grant concessions for their absence.
4. A Good Agent Is Still Important
Under the current real estate market conditions, hiring a good real estate agent is as important as ever (maybe even more important now) for selling your Los Angeles home. Hiring an agent is, of course, no guarantee of a quick sale a great price, but it will tilt odds in your favor and increase your chances. You do, however, need to make sure your agent has the right experience and skill set to meet your needs.