Are you being tempted to sell your Silicon Valley home with the double digit appreciations you are seeing today? Are you ready to price your home for sale? Well, you will be well advised to consider the Top 6 factor that will impact your pricing:
1) Demand for homes
Most buyers require style, school district, number of bedrooms, lot size as their basic criteria in making an offer on a home. Ask a real estate agent to give you a list of the nearby homes that share the same characteristics that have sold in the last six months. This will give you an accurate depiction of what homes like yours are actually selling for. You should not go outside of a 1 mile radius and stay in the same zip code if you can.
2. Supply of homes in your zip code
Have your real estate agent prepare a list of all active and pending houses like yours in currently on the market. For instance, in April 2014 only 45 homes sold in Los Gatos which is a clear sign of seller’s market since there is not enough inventory.
3. Interest Rates
The interest environment have major impact on home sales since 1% increase in the rates can translate to 10% affordability loss for buyers. And the recent rise of interest rates which started in 2013 with the Fed’s announcement to stop the purchase of mortgage backed securities. These rise of rates have already slowed the List price increase for the same period in 2013 and some families are already opted to rent instead of buying which is not the American Dream they had in mind.
4. Un-Employment Rates
With the tech fueled recovery, Silicon Valley enjoys the lowest rate of unemployment in the country. In contrast Silicon Valley is producing more cash home buyers that are putting more pressures on the already shrinking inventory.
5. Foreclosures In the Area
Sale of foreclosed and distressed homes only accounted for 20% in California last month. So, the impact of the distressed sales are less significant in Silicon Valley than other parts of California.
6. Consumer Confidence
Consumer confidence is a key factor that brings buyers to the market. And all indications are that Silicon Valley buyers are not going away time soon.
Contact Us if you need help pricing your Los Gatos, San Jose, Campbell, Saratoga home for sale.