To Sell or Not to Sell...
“I just don’t think this is a good time to sell”, “What if home prices drop soon like in 2008?”, “Are we at the peak of this market?” These questions cross the minds of many homeowners today. While we may not know exactly what the Real Estate market will look like a year from now, we can review the numbers and get a pretty clear picture.
Low unemployment, expansion of large local companies like Facebook, Google, and Dropbox, and the continued rise of publicly offered startups add to the increased demand for housing in the Bay Area. The number of qualified buyers and sparse inventory in an area inundated by growing wealth has made many current and soon-to-be homeowners shrug off the new tax laws, one of which limits deductions on mortgage interest on loans $750,000 and below, which constitutes only a small percentage of the area’s Real Estate. Santa Clara County saw the median home value increase by 21% last year to $1.7million, all while inventory dropped 41% (Zillow.com). The question we most often hear from homeowners at The Allen Group is “If I sold, where would I go?”. Homeowners are staying in their homes longer and haven’t had to contemplate buying at prices like this before or with as many consequences. Those who seem most concerned with the new tax laws are retirees and first-time homebuyers, many of which are seeking out-of-state opportunities for their next home purchase to avoid the high price tags and to save on taxes.
Overall, the housing craze in the Bay Area is expected to increase home values by another 5-10% this year based on the continued growth of local tech industries (Ralph McLaughlin, chief economist for Trulia). That can be seen in a couple different lights. If you sell now you know that you're selling at time when your home is probably worth more than ever before. If you wait to sell, you could potentially net 5-10% more than selling now. The real answer lives in your reasons for wanting to sell in the first place. Now is a great time to sell in the Bay Area. Now that’s a positive outlook!
Are you thinking about selling? No one will work harder for you than The Allen Group. Call us today! (408) 309-3216