How External Factors are Affecting your Encino Home Value
All too often, sellers focus on what meets the eye when it comes to pricing their Encino home, without taking into account huge external factors – and I don’t just mean the potholes on the street. External factors include the general economy, interest rates, the time of year and what’s going on in other parts of the city.
Economic Indicators and Market Trends can tell us what direction the market is going before we actually get there. It won’t tell us the final destination or a clear cut expectation, but we can at least use it to estimate were the market is going.
If you’re the type of buyer or seller that likes to time the market indicators can be very useful.
For example, if you follow a twelve month trend for home prices you may notice them start to peak and if you pair that with inventory you can also estimate were inventory may bottom out to take full advantage of selling.
If you’re a buyer you might watch prices bottom out and inventory peak. However, when a trend line bottoms out or peaks it can turn quickly, so you’ll want to estimate the best you can when estimating the turning point in the market.
Interest Rates can also be a determining factor on buying a home.
For some, if interest rates reach a certain level they may be too high for them to buy and if interest rates are very low this may allow more buyers in to the market.
You might find that depending on were the interest rate falls your buying power may increase or decrease, so timing your purchase were interest rates are lower may be to your advantage.
I think most sellers are well aware that there is more going on in the Spring than there is in the Fall and Winter. However, I have found that sellers get a little more for their home when there are fewer buyers looking in the later part of the year because there are fewer homes to choose from.
Market Conditions in your Town/Neighborhood
Every market is different. A neighborhood/town could have completely different conditions compared to the next town over and can even be very different from the regional market.
A lot of that has to do with whether or not their are buyers for that area and price range. If there’s as shortage or over supply this can push prices in any direction.
Employment can also be a big factor in determining what direction prices goes and impact inventory quite a bit.
If unemployment is high there won’t be much buying, but if a community has an influx of jobs it can experience tremendous growth.
If you need a little help figuring out where to price your Encino home, based on everything you now know, give me a call at (310)926-2386 or contact me through this website. I look forward to helping!
– read the original article here.