The
number of home sales continue to rise on the Central Coast, resulting in a
larger demand which, in turn, is nudging prices upward. While some
neighborhoods are showing significant rise in value, others seem to be moving
along at a slower pace.
It
is important to understand that this is a normal scenario during a housing
recovery. Realtors know that certain areas and price ranges will become
suddenly desirable to the extent that homes do not come on the market fast
enough to satisfy their buyers. Often and suddenly, the interest will
wane in any particular area, once the price point has been saturated.
Usually
at that point, the buyers switch their attention to other neighborhoods and the
cycle repeats itself. It can be hard for sellers to understand and accept
that a property in another neighborhood is experiencing a spike in value
while their own property has not gone up less.
The
truth is that as the market continues to gain strength and as the economy
continues to grow, everyone selling a home should see a decent increase.
Will
we see soaring home prices like we did before the bubble? I hope not.
I think that most of will agree that a steady and stable housing recovery
is in everyone's best interest.
Right
now is a good time to sell because interest rates are low and buyer
confidence is up. Economists are predicting a 5-6% rise in home prices
this year. That means if your home was worth $400,000 at the beginning
of 2014 and it increases 6%, it may possibly be worth $424,000 by the end of
the year. It's important to remember that these predications are based on
an average. Some will experience higher growth, while others may not
increase as much.
Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates.
If you have any questions or concerns regarding your own property, contact
Nancy at (805)710-2415 or Nancy@NancyPuder.com.
Go to Facebook.com/NancyPuderRealtor
and "like" her page to access other real estate related articles.
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