Now May Be the Right Time to Sell Your Home
In the real estate market, the scale is definitely tipped in the seller’s favor today, as it has been for a few years. There are several reasons for this trend. According to Sam Khater, Chief Economist at Freddie Mac, one of the major causes is lack of inventory:
“Simply put, new housing supply is not keeping up with rising demand…the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage.”
This fact is especially true in California. There is a myriad of reasons for our lack of housing, among them being many homes lost in fires and other natural disasters over the past several years, both in Northern and Southern California.
We already had an undersupply of newly constructed homes before the pandemic, and the pause in construction because of the stay-in-place orders only exacerbated this condition. That pause combined with the difficulty in showing property during the beginning of the shut-down, caused some sellers to back out of ongoing listings.
In addition to the dearth of housing, homeowners are choosing to stay in their homes longer. According to the National Association of Realtors, the median tenure for sellers in 2019 was 10 years. Historically, staying in a home for 5-7 years used to be the norm, until the housing bubble burst. Since 2010, that length of time has trended upward toward 9-10 years. Why? Largely due to homeowners aiming to recoup their equity.
The California’s have had to put up with the work-from-home mandates, which has resulted in many home owners or event renters, realizing the deficiencies in their home. Having to adapt to this new order of conducting business has many Californians having conversations about “This house just isn’t working for our family anymore.”
If this sounds a lot like your world, pick up the phone and find a good local, licensed realtor to start the process of looking and listing. And, if you don’t qualify for a conventional loan or need financing in a hurry, give Sun Pacific Mortgage a call at 707-523-2099. We have serviced California borrowers with hard money loans for over 32 years and have many happy, satisfied clients to attest to our overall performance and honesty.