As the above chart shows, the local Manhattan Beach real estate market is still on fire, marked by low inventory that is driving higher prices for many properties. Multiple offers on listed properties are more the norm than the exception. The entire South Bay is in a similar spot. But it must be noted that that the entire country is not enjoying this type of real estate market. Our area feels like it is part of a resurgent economy. And, in fact, our little snapshot of the world is doing pretty well indeed. So, it begs the question: how long is it going to last? If the government continues to help hold interest rates down, and the result is not a vibrant economy nationwide, what will happen when rates inevitably rise?
It is conceivable that the market we are currently enjoying in Manhattan Beach will hit a wall. Even with low interest rates, when market resistance develops to rapidly rising prices, some buyers may hold off making decisions. This would result in more inventory, causing sales volume to slow down, and prices to plateau, and ultimately fall. There are no signs of this in our current environment – but eventually it will change. The point is that we are in the garden spot – the prime part of the market when everyone looks like a genius. It’s Spring, inventory is really low, and prices continue to rise. So if you are thinking about selling over the next 12 months NOW may be the perfect time to do it.
Perhaps you are thinking of selling, taking advantage of your capital gain exclusion and pulling equity off the table by downsizing. Or maybe it’s time to take advantage of your increased equity to get a larger home for your growing family and locking in a great long term interest rate in the process. THIS may be the best chance to do this that we may ever see again. It may seem like hyperbole, but I truly believe it.
I pride myself in my ability to walk my clients through the process of analyzing their real estate goals and achieving them. Whether purchasing a new home or investing in other property, I can help you clarify your purpose. Is this the right time for you sell, buy, invest? Let’s talk about it. It costs you nothing, and I promise you will gain from the conversation, whether we wind up working together or not.