The real estate market is shifting toward some definite trends that may affect your home for sale in Santa Cruz. Since 2006, the median cost of a home has dropped almost 30%. The good news, according Moody’s Economy.com, is that most of the nation’s metropolitan areas are expected to see less than a 5% drop in prices a year from now. Even better news, 10% are expected to see modest increases.
If you have a home for sale in Santa Cruz, keeping an eye on the trends can greatly increase your chances of selling, no matter what the area. Here are two of the biggest trends:
Trend #1: Home Prices Staying Down
Home inventories are slowly creeping back up, and another 3 million distressed homes are expected to be foreclosed on this year. As well, one-fourth of current homeowners are now underwater with their mortgages, and 18% of borrowers are choosing to walk away. In short, stressors on the current housing market may very well push national median prices down another 5%, as mentioned above.
How can I take advantage?
With the glut of foreclosed homes, they’re likely to be your highest competition. That means competing in price could be disastrous. Instead, play up the advantages of your home. For instance, foreclosed homes may need a lot of fixing up. To compete, make sure your home is inspected and fixed up before it’s listed. Once you know there aren’t a lot of problems add a one-year warranty for the buyer that covers fixes such as the furnace or water heater. It’s inexpensive and may very well make the difference in how quickly and at what price you sell your home.
Trend #2: Small Homes Selling Faster Than Large Homes
Larger, more expensive homes now have a 20-month backlog in inventory. They cost more and require a larger financial commitment. According to the National Association of Home Builders (NAHB), the median home size dropped from 2,300 to 2,100 square feet since 2007.
How can I take advantage?
If you have a large home, don’t wait until prices dip further; put it on the market now. The major key to getting it sold now is price. Keep the price competitive, and start out low enough so that you won’t have to drop the price more than once. This is a red flag for buyers.
If you have a smaller home for sale in Santa Cruz, you’re already set to take advantage. People also want to lower their energy bills, which usually happens with a smaller home. Market these advantages for a better chance of selling.
If you want to sell your home, it helps to keep up with the housing trends and look at each one to see how you can take advantage of it.
If you’re trying to sell your home, I can help. Call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.