Buyers and sellers alike have been waiting for the spring season to start. Buyers in hope that inventories would expand and sellers in hope they would not and they could offer their home at higher prices.The entire process of wishing and hoping is the correction of the excesses of the 2009 Crisis when housing prices collapsed and inventories dropped and became flooded with short sales and bank owned properties. In that market were those who could not sell because their homes were less than they purchased them, had a mortgage in an amount greater than the market value of their home or simply the seller could not refinance for credit reason, bank lending policies or the inability to move up or down to a new home.This month has started out as higher prices dominate, but increased inventories do not. As we get deeper in March the hope is for inventories to expand. If that does occur a watch item is list price and sales price. For the moment the list and the sales favor a higher sales price to the list price.Backing the higher prices is the optimism of consumers. PerFannie Mae reports of consumer confidence are at ALL TIME HIGHS. This does not bode well for buyer looking to scoop a deal. The chance of buying at list is very slim. So far this month closings in the areas we cover have all had higher sales to list The big question this month is in the Interest Rate arena. Will the FED change their comments to eliminate “patience” on a rate increase. There is a mixed group in this area. The Hawks say yes. The Doves say no. To back the Doves on not raising rates is former FED chief Alan Greenspan who says our economy is as weak as the Depression Era. There are a number of statistics that make the case for real estate prices to rise from increased demand. Mortgage applications show buyers are edging back into the market in March. From the selling side of Baby Boomers is the sticker shock of what they can buy versus what they can obtain from a sale of their Family Home. For those who are buyers, waiting is not on your side. If the mortgage sought could qualify for Fannie Mae, there is the risk that Congress will do away with Fannie Mae in 2 years. This will eliminate the 30- year mortgage.
Home prices are nothing more than Supply and Demand being out of synch. More demand price go up, more supply prices go down. The most important signal in our area is new employment figures. The more jobs available the more that prices on median price homes go up. They in turn give way to sellers moving up and or down. The big news in this area isFacebook buying 21 properties in Menlo Park. There can be no other choice in a buyers mind than to buy now rather than wait to compete with the employees who will fill the 21 buildings in Menlo Park.
For the seller, 10 Interior Design Trends That will Turn off Home Buyers. There is no need for a seller to jump and get a designer. The risk in that is the designer will sit with the seller and design an interior and an exterior that the seller likes. That is not the purpose. The home should be designed to appeal to the largest number of buyers. It is neutral in design and style. Gone are the blue, black or red walls. The pink bathrooms. Neutral white of off white interiors are must. The link at the beginning will be the best source of how to make your home salable without hiring an interior designer.
As a closing item, for those who are looking for that second home the pied-a-terre think Europe. The Euro has decline to a level it is near par to the US$. That means that when the Euro once a $1.30 to the US$, is now $ Euro to the US$. The one bedroom in Paris is now $854,000 not $980,000. Or $870,000 to $760,000. Just from the Euro declining. Tuscany you like? Stone walled 5500 sf home went from $3.5 million to $2.6 million. Barcelona is your choice? $1.62 million is now $1.35 million. Of course we can help you here. Christies International is our international affiliate. Click onto www.oliverlux.com and or go to the Christies link and begin your search. Or simply call me 650.207.1986 firstname.lastname@example.org and I will be able to help you find that little or big hide-away for you.