Is now the best time to sell?

      Is now the best time to sell?

It’s a great time to sell.  Prices are currently the highest they’ve ever been and homes are selling quickly.  The upward price trend should continue for a at least a little while but there’s no guarantee how long this will last.

Interest Rates went down so prices went up.  To bolster the economy, the Federal Reserve lowered interest rates.  Lower interest rates = lower monthly payments = higher home prices.  Affordability is based on the mortgage payment.

Demand for homes in the suburbs went up.  Due to COVID, many companies are having their employees work from home.  Not needing to commute to work they are moving from high-priced rental areas like San Francisco to the East and North Bay suburbs where they get more bang for the buck whether buying or renting.

Larger, nicer homes gained popularity.  This “work from home crowd” needs a larger home to incorporate workspace and desire a nicer home because they spend more time there.  Up until now, the price gap between large and small homes was small, due to the demand for smaller homes imposed by the downsizing of baby boomers.

The end result is, real estate prices are the highest they’ve ever been and homes are selling quickly.  The market is very volatile.  It’s been both down and up this year.  Though it’s currently up and a “Sellers’ Market” there is no guarantee how long this will last.  It’s interesting that the highest prices in the Bay Area real estate market occur in the middle of a pandemic while unemployment is the highest it’s been in years.  That’s optimism for you!