Home Buying History
When the housing bubble popped in 2008, wise homeowners patiently waited to see how everything would shake out. We have good news for those who may have been hesitant to dive back in. The shaking appears to be over. Home values are rising and the economy has stabilized. In fact, the local Redlands housing market is growing at a steady pace. And since inventory remains low, if you would like to sell your Inland Empire house to move up to another home, now is the time to act!
According to a report released by MortgageNewsDaily: “The housing inventory, or lack of it, dominates Freddie Mac’s Outlook for April. The company’s Economic and Housing Research team says the supply of for-sale houses, especially starter homes, is at its lowest level in over ten years. This has real implications for home sales in 2017 and, unless inventories improve, they see a decline from last year when sales were the best in a decade.”
Real Estate Homeostasis
A few universal real estate principles:
- Pre-approvals rock. If you don’t plan to pay cash for your move-up purchase, you will enjoy a host of benefits by seeking pre-approval. This is a good idea because you will know exactly how much home you can afford, so you won’t waste time searching for unaffordable houses, only to face disappointment once you meet with a lender. Also, pre-approved buyers usually enjoy preferred status in sellers’ eyes, since pre-approval demonstrates serious financial backing. This gives buyers a leg-up in a competitive bidding environment.
- Location matters. In Redlands, where Candace Cantu McGloin is based, the school district is superior. This is important regardless of the age or even whether the home seller has children. Access to quality education is a big selling point. So, it should weigh heavily in any move-up decision.
- Supply & Demand dictate home values. A basic truth you likely learned in high school economics, real estate prices rise and fall based on the laws of supply and demand. When the demand for real estate is high, prices go up. When the number of available properties increases, prices usually go down. In the Inland Empire, inventory is currently low. This means that sellers can ask more than they would be able to in a glutted real estate market.
Housing Market Metamorphoses
While certain aspects of real estate sales remain unchanged, here are a few important ways the market has changed:
- Lending standards are tight. While virtually anyone with a pulse could borrow without a down payment circa 2007, in 2017, mortgage lenders apply stringent rules to mortgage applicants. While this is disconcerting for buyers who have less than perfect credit*, it is a plus for home buyers who have taken pains to protect their FICO scores.
*Candace Cantu McGloin works with home buyers who have a wide variety of credit scores. Don’t let low FICO scare you away from pursuing a potential home purchase. We could put you on a plan to increase your scores.
- Home staging is all the rage. The current realities of the home market include buyers’ expectations about walking into a camera-ready house. Television shows such as Flip or Flop, Love It or List It, and Property Brothers have trained a new generation of home buyers to either pay top dollar for move-in ready properties or offer low when homes need work. One way to improve the marketability of a house is to professionally stage it. If you want to sell your house to move into a nicer home, don’t neglect this important home selling marketing method!
- Homes sell. Despite the hype, people will always buy and sell homes. Don’t let scary stats keep you from your dream of home ownership or moving up from your starter home. If you work with a qualified mortgage lender and real estate agent, you will be able to own the home of your dreams!
When it comes time to list your Redlands home, Keller Williams Realtor Candace Cantu McGloin is qualified and willing to help home buyers and sellers across Southern California. She specializes in the cities of Redlands, Highland, Yucaipa, Grand Terrace, and Loma Linda but has done transactions both on the buying and selling side throughout Southern California. To learn more about real estate in Redlands or the Inland Empire or to list your home, call Candace directly at (951) 201-2443.