Q1 2013 Update – Market Activity for South and Mid-Peninsula
WHEN WILL THIS HOT REAL ESTATE MARKET END?
All the usual signs of a “market top” are present: from front page newspaper headlines of a “Hot Real Estate Market”, cocktail party conversations about recent home sales, and high-priced homes selling quickly.
In a normal 7-10 year market cycle, the hot market (appreciating) phase usually lasts 2-3 years, but the duration can be affected by the Fed’s interest rate policies. For example, the price declining phase (2-3 years) and market bottom phase (3-4 years) were shorter this time, due to super low interest rates. Will the hot market phase last longer this time? Unfortunately, there’s no way to know when the market will change, only that it will!
GET READY FOR A CHANGING MARKET
When the market changes, consumer confidence will drop; sales will slow; the number of homes on the market will rise; prices will stabilize and then fall. For those thinking of selling their home during the next 1-2 years,we recommend getting in touch with us now. We can advise you on how to prepare your home so it is ready to sell when the market begins to change. For those homeowners staying in our area long-term, the good news is that home values typically double during every ten year cycle – regardless of what the Fed does!
WANT MORE SPECIFIC INFORMATION?
If you would like an in-depth analysis of market trends in your particular town or neighborhood, call Jeff at 650/823-8057 or Steve at 650/450-0160, or email us:JeffAndSteve@apr.com.