1. MORTGAGE RATES are phenomenally good. Defying gravity and against the predictions of the experts, rates have actually declined to the 4% plus or minus range. This is great for buyers refinancing and gives the market a push. Rates could rise by 0.5% this summer, but whatever happens, rates should be great!
2. EMPLOYMENT keeps going higher and wages are starting to rise. Another plus for home sales.
3. CONSUMER CONFIDENCE is strong and another good sign for sellers.
4. STOCK MARKET recovered most of its losses from the end of last year, but is still volatile. Good for 401k balances and a positive on the wealth effect when it’s up.
5. INVENTORY, the number of homes for sale, has slowly increased, which should continue over the summer. However, we should not be overloaded with inventory, so this may aid buyers. No inventory equals multiple offers, but too much inventory is not good. We should be in-between.
The Bottom Line:
Home sales look good this summer but may slow down from the unexpected good pace this Spring. Buyers have become more selective to condition and pricing. Taking the time to get your home ready for sale and setting a reasonable price will become more important. Put these two together with the professional guidance of your South Bay Experts – Jon and Ray – and you will have a happy face SOLD sign on your home. With over 1,000 homes sold, no one knows the market like the Millman Team. We get results for our clients!