WHAT TO DO – ARE YOU ON THE FENCE TO SELL YOUR HOME?

Prices are Probably Peaking Right Now ~ However The Low Supply of Homes is expected to Increase and the High Demand by Potential Buyers is expected to Decrease. Waiting Could Result in a Lower Sales Price for You in the Near Future

• Homes for sale in Alameda and Contra Costa Counties are currently down about 40% and 48%, respectively from just one year ago. This huge reduction in supply has led to many more multiple offers and higher prices for the sellers over the last few months.

• Supply is expected to increase partly because Freddie Mac just announced a “potential large wave of foreclosures” due to a record number of borrowers in default on their loans. (Frank Russell, San Jose Mercury News, February 24, 2010).

• Potential Buyers are currently out in full force to take advantage of powerful income tax credits. These credits of $8,000 for first time buyers and $6,500 for repeat buyers are set to expire April 30, 2010.

• Potential Buyers are attracted to record low mortgage rates. These low, low rates are expected to go up after March 31, 2010 because the Federal Reserve is set to eliminate their massive subsidy of low rates. “Most economists, including Boston Fed chief Eric S. Rosengren, reckon that rates on standard 30-Yr fixed mortgages will rise about 0.75% thereafter” (Jack Hough, MSN Money Feb 21, 2010).

• “Goldman Sachs reckons that government support boosted house prices by 5% last year – or rather kept them from falling that much more.” (Jack Hough, MSN Money Feb 21, 2010).

The loss of tax credits and record low mortgage rates will cause many potential buyers to just sit back and wait.

• “Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry … January’s data will increase concerns that the HOUSING REBOUND COULD FALTER in the coming months as the government withdraws the support it has used to try to bolster the housing market … economists are worried because UNEMPLOYMENT REMAINS HIGH. This weakness is CAUSING CONSUMERS TO SHY AWAY FROM SPENDING, especially ON BIG TICKET ITEMS SUCH AS HOMES.” (Martin Crutsinger, Associated Press Feb 24, 2010).

• FHA, Fannie Mae and Freddie Mac are continuing to tighten up on the qualifying criteria for new mortgages. They are requiring higher FICO scores, lower debt ratios, more cash reserves and higher down payments. THESE FACTORS WILL ELIMINATE MANY POTENTIAL BUYERS ALTOGETHER AND DISCOURAGE OTHERS WHO ARE ON THE FENCE.

All these factors make your Danville, Alamo or San Ramon home worth more than ever in recent times.  So if selling to move up to a nicer home, or for any other reason, has been in the back of your mind, now is the time to get your Tri Valley home sold so yo get the most you can before market conditions change once again.  Tell us about your home and let’s help you determine just how much your home is worth today!

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