by Kathy Gibson | Feb 2, 2023 | Buying, Market, Selling, Uncategorized
Five Considerations….About 10,000 Americans retire every day. Many own their (too large for their needs) home and were planning to downsize or move, but feel they should wait now that real estate markets have dipped off highs that surged between 2020 and 2022 in many areas: Why should they sell now? Here are some reasons why selling now might make sense:1. Liquidating a home now when all markets are down – including equity markets – allows you to buy replacement investments at lower prices with a stronger potential upside….including equities.2. Liquidating a home now allows you to earn more for your cash deposits that now produce much higher returns. Even a basic savings account delivers over 3%.3. Holding on to a large expensive home has carrying costs: insurance, maintenance, repairs, electricity, gas, mortgage payments, real estate tax payments. If markets recover in the next 2 years to where they were, will those gains outstrip the costs to carry this home?4. The lower the sale price, the lower your capital gains taxes too. Many who have owned their homes for many years may have large capital gains taxes beyond the $250k or $500k exemptions.5. In a down housing market with higher interest rates, job losses and a recession looming, first time home buyers are often more disadvantaged: the smaller homes that also appeal to retirees may be more affordable and attainable now than later when – not if – the economy bounces back with lowered interest...
by Kathy Gibson | Dec 14, 2022 | Buying, Market, Neighborhood, Selling
When and/or if a recession hits the US – although the definition of recession keeps evolving too – it will have to be the least surprising event in history. Never before in my half-century-plus of life have I heard the word ‘recession’ uttered, printed or broadcast more than in the past 6 months. Predicting a coming recession does not require being a genius. A recession is 100% guaranteed. WHEN that happens is guesswork and involves numerous indicators and conditions, although a ‘shock to the system’ or a ‘surprise’ can trigger one more unexpectedly. Covid lockdowns triggered a recession. Recessions are also susceptible to business cycles when economies are forced into ‘cool down’ mode after overheating and the money supply is tightened. Frankly, while all this recession-predicting and chatter is annoying and a bit of a downer, it is not too unlike being warned about anything early: preparing for a big hurricane with many days warning allows people to board up homes and do all sorts of things more calmly and thoroughly. Discovering and diagnosing a health issue very early usually allows a better and more effective cure too. So maybe while we bemoan all this ceaseless recession chatter – and the approach of a recession now, 2 months, 2 years or 2 decades from now – maybe we should celebrate the fact that collectively we are all acutely aware of its potential, and because of this we are being forced to be proactively defensive, prudent, careful, fiscally conservative, not arrogant, etc. A little fear can prevent all sorts of bad behaviors and encourage more creativity, innovation,...
by Kathy Gibson | Dec 13, 2022 | Buying, Market, Neighborhood, Selling
The Holidays can be a great time to sell Historically the ideal time to sell a home is during the spring months. Many people who may be thinking of moving are distracted with the holidays, and inclement weather can keep people from wanting to go house hunting. However, selling during the holidays can be a benefit for a seller. Here’s why. Inventory The number of homes coming on the market is extremely low. If you price your home right, it’s likely to sell in a short amount of time. You may be able to sell for a higher price than you could during the spring since there’s less competition. Mindset of Buyers Buyers that are house hunting during the holidays are motivated! There’s a reason they’re out shopping during one of the busiest seasons of the year. Fewer Looky-Lu’s Buyers who will come to open houses during the holidays are motivated. Anyone shopping for a new home between Thanksgiving and New Year’s is likely going to be a serious buyer. Your neighbors don’t have precious time to spare roaming through your home just because they’re curious. Holiday Nostalgia The holidays are a time for baking cookies, gathering around the fireplace and making ones home beautiful. Holiday decorations create a sense of warmth and togetherness, so it’s easier for a prospective buyer to feel an emotional connection to your space. Festive Neighborhoods People decorate their homes for the holidays, and festive neighborhoods create a sense of nostalgia that buyers will connect with. Streets adorned with decorations can be an emotional connection for a prospective buyer. Tax planning and Relocations There...
by Kathy Gibson | Dec 12, 2022 | Buying, Market, Neighborhood, Selling
Pasadena, CA Mon Dec 12 2022 This week the median list price for Pasadena, CA is $1,445,000 with the market action index (MAI) hovering around 43. This is less than last month’s market action index of 45. Inventory has decreased to 125. The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in the Market Action Index (MAI), we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on...
by Kathy Gibson | Dec 6, 2022 | Buying, Market, Neighborhood, Open House, Selling
Pasadena, CA Tue Dec 06 2022 This week the median list price for Pasadena, CA is $1,580,000 with the market action index (MAI) hovering around 44. This is less than last month’s market action index of 46. Inventory has increased to 125. The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in MAI, we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices. Monrovia, CA 91016 Tue Dec 06 2022 This week the median list price for Monrovia, CA 91016 is $1,062,000 with the market action index (MAI) hovering around 48. This is an increase over last month’s market action index of 47. Inventory has decreased to 28. In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward...
by Kathy Gibson | Nov 28, 2022 | Buying, Market, Neighborhood, Open House, Selling
Pasadena, CA Mon Nov 28 2022 This week the median list price for Pasadena, CA is $1,498,000 with the market action index (MAI) hovering around 44. This is less than last month’s market action index of 48. Inventory has increased to 135. The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in MAI, we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices. Altadena, CA 91001 Mon Nov 28 2022 This week the median list price for Altadena, CA 91001 is $1,325,000 with the market action index hovering around 53. This is less than last month’s market action index of 55. Inventory has decreased to 31. The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in MAI, we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on...