Why Today's Market Conditions are Too Good for Sellers to Ignore
In last week's blog I outlined a couple of recent huge sales successes at The Nicoli Group, including our negotiating over $150 per square foot higher than anything that's ever been sold in the home in question's Sunnyvale neighborhood. That property also sold for over $400k above asking price!
The two examples I looked at last week (click here if you missed the blog) are not isolated incidents. Indeed many of you will have seen all the publicity concerning the Sunnyvale home that sold for $800k over list in late summer.
While the real estate market looks rosy almost everywhere in the nation, our area is demonstrating exceptional performance right now. It's probably accurate to say that the new Apple campus, and other major investments by the IT industry, has elevated our part of the world to a unique global status.
Consequently we're seeing incredible buyer enthusiasm for the right property in the right location and that inevitably cascades to the market as a whole.
The opportunities for many homeowners to achieve a phenomenal return on investment have arguably never been greater.
So are we headed for even better times as we head toward the end of the year and moving into 2018?
The truth is that no one has anything approaching an accurate answer to that question. All sorts of worldwide and national situations and events will have considerable influence in forming the shape of what's to come over the next few months. The current tax reform proposals, for example, could have a wide range of implications for people's incomes and, as these are still in a state of flux, it's not sensible to predict the outcome for real estate here.
Low mortgage rates continue to positively inform purchasing decisions, but the better shape the economy is in, the more they are likely to rise in future. As I've often said, the current situation cannot and will not continue indefinitely, but so many factors play in to how this eventually rolls out that even the most well informed expert analysts could get it wrong, just as they have for several years now.
We also have potentially volatile global situations and, as distant as these may often seem, they do have a very direct effect on the willingness of investors to deal in riskier assets, affecting stock and bond markets.
In recent years, international tensions have often tended to favor safe haven bond investment when national circumstances would otherwise have seen much less risk aversion and, as a consequence, higher mortgage rates. We saw the opposite happening for a while, of course, when rates rose quite steadily for a while following huge stock growth in the aftermath of the election last November. Since then there's been something of a correction. However, with such a strong economy there appears to be more of an upward pressure on rates, even though other events that tend to encourage less risk have kept them in check.
I could obviously carry on citing various instances where there could be uncertainty in the future, but perhaps the key thing to emphasize is that there are inherent risks in just assuming that we'll be looking back at an even more successful homes market this time next year.
What we can say, however, is that right now we're achieving incredible, sometimes record breaking, results for our clients and there's perhaps a need to ask if it can really get much better than it is right now?
On the other side of the coin, in 1994 when I started in this business I remember being told by experienced fellow realtors that prices would never go up! I passed on buying a house in Cupertino for $140k that is now worth over $1.8 million! If you happened to buy back then, well now might be a very good time to cash out.
In a world of uncertainty, however, one thing is clear and that's the fantastic shape our market is in as the holidays draw ever nearer, with many great reasons for buyers to want to complete sales before New Year. Dealing in the "now" means you can far more accurately predict outcomes.
Why not get in touch with us today and we'll happily take an informal discussion with you to explore what are the best options for you.