I would say it all depends on location. I just ran a quick check on the zip code 95121. As of today, only 18 Active listing for the price range $400k-800k. Home sales in this area moving fast.
I hosted an open house last weekend and there are more than 30 families stopped by in the window of 2 hrs.
It's impossible to predict the future interest rate. However, most of the buyers I talked to are anxious to buy now before the interest rate rise.
It appears that the market is great to the sellers before the Interest Rate and the inventory increase in your area!
If you consider to sell, please contact me.
If my response was helpful, consider clicking BEST ANSWER!
â€œThe North Valley, Evergreen and Santa Teresa Neighborhoods Specialistâ€
Elite Realty Services
2787 Moorpark Ave.
San Jose, CA 95128
Examine the reasons for wanting to sell now....does your family need more space? Are you downsizing? What would you move into?
Right now we are experiencing a strong seller's market - who knows what the future will bring. Housing markets are impacted by so many things outside of our control.
Do what's right for your family and don't worry about the rest!
â€¢ If you are moving up, then sell now before the margin for your replacement home grows even larger.
â€¢ If you are moving down, then you canâ€™t afford to wait until the market softens because it will suddenly be much harder to sell your existing home.
â€¢ If you are selling and plan on renting, get a realistic value for your home from a Realtor then talk to your accountant to make sure you donâ€™t have any tax implications â€“ the resulting conversation will help you determine timing.
â€¢ If you are moving out-of-area, then itâ€™s your best guess as to when the market will be at its best. None of us here know how long the current market will continue to be on fire, but when it turns, it will do so â€“ quite literally â€“ in a single day.
Here is a post that may be helpful:
How Good Is YOUR Timing? 3 Important Reasons NOT to Time the Market
Essentially, if you are looking to sell, the longer that you wait, the greater your risk of having the market turn against you.
In San Jose, we are in the second year of a recovering Real Estate Market. During the recovery there is a large amount of pent up demand that must be satisfied. The pent up demand comes from people who were sitting on the sidelines waiting for the market to reach the bottom.
Typically the buyers wait too long, the bottom has already passed and now large numbers of panicked buyers jump back into the market to buy, before prices rise even farther.
A similar process happens with sellers. The sellers hold their property off the market until the market has reached the peak. However sellers often wait too long, and the peak has already passed by the time the sellers start putting their properties on the market, once it is clear that the peak has been reached. Because of the large supply of properties now coming on the market, prices begin to fall. Now, large numbers of panicked sellers dump their properties on the market before prices fall even farther. The inevitable result is that prices are forced down even farther and faster.
If you want to be secure in your gains, now is the best time to sell.
If you want to speculate you can hold your property off the market and wait for even higher prices and hope that you can beat the rush of people who want to sell once it is clear that the peak has been reached. The market turns very fast, often within a matter of days, when that happens. If you want to speculate you will need vary good, reliable, current Real Estate Information.
There are a number of indicators that you can use to see when the market is reaching the absolute peak. One of the best indicators that I have found is the Average Days on market statistic for the market area where you are located. If you want to speculate, I recommend that you watch that indicator on a daily basis and be able to calculate your own number from the information available. Do not rely on a statiistical reporting service. Once a statistical reporting service has published the current number, then everyone knows that number and you have lost your advantage of being ahead of the market.
Unfortunately the newspapers are often several months late to report that story. By the time the newspapers begin to write about the change in the market, that change in the market is already several months old, and it is too late for you.
In addition, to the fact that I am a Real Estate Broker with over 25 years of experience in the Silicon Valley, I am also a former Real Estate Appraiser, both Commercial and Residential Real Estate, and I am also an expert witness in court and arbitration cases where the fair market value of Real Estate is at issue.
For more information you may reach me at my cell phone: (408)509-6218
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com
I dream of having a $500,000 tax bill.
You really need to make a lot of RIGHT decisions to earn that responsibility.
Pam, there's too much unknow about your situation or circumstances.
Lots of exceptional guidance, but what applies to you only you or your accountant or attorney can decide.
What your really, real goal? You know,,, the one five levels down.
Then your objective will become crystal clear.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
If you're planning on cashing out, moving somewhere else where prices are more stable....then sure. Take your profits. But if you're planning on staying on the merry-go-round (as plenty of people did in 2005 and 2006), be prepared for the same fate they encountered. The merry-go-round stopped and they were left with vastly overpriced homes they couldn't sell. If you think you're an expert at timing the market, you can keep buying and selling until you think it's time to duck out. But lots of people thought the same thing before the bubble burst.
Some of the really smart ones who were either lucky or able to time the market sold and then rented. They got their profits, then moved to the sidelines.
As for capital gains tax--forget about it. I'm not an accountant, so I can't give accounting advice. But I agree with investors I've heard who've said, "I hope I have to pay a million dollars in tax." What they meant was: "I know I'll have to pay some taxes at some point. I want to minimize those taxes. But I want to make a LOT of profit, and if that means paying more taxes, then I'm very willing to do so." Which would you rather do: pay 20% taxes (or whatever) on a $100,000 profit, or pay 0 taxes on no profit?
Hope that helps.
Carl took the words right out of my mouth, but he frequently does that, which is why I sometimes have nothing to add after he's responded to a question.
What I can add is this, you will never know when the market peaks or bottoms...these are backward looking statistics, meaning you can only really assess them as we move well past that time period. So if you wait (or have to wait to find a replacement home first), then at least be comforted that this is currently an extremely robust market for sellers--and you will, in all likelihood, enjoy a quick sale and multiple offers.
To further maximize your money, you need to also firmly control those costs for which you can control...these are costs associated with selling. They would be things like the commission charged by your realtor, the cost of the escrow fees, and who pays for what additional fees. As quickly as homes are selling today, a discount broker will sell your home for just as much money in this market as others can.
Allison James Estates and Homes
Buyer rebates and low cost listings for sellers
If so, now that values have incresed, you may be seeing a lot of folks finally with their head enough above water wanting to sell so they don't have to default and ruin their credit and can still walk away with something rather than nothing.
If that's the case you may see somewhat of a glut of fresh inventory which could soften optimal values somewhat. The best thing to do at this point if you're really intent on selling is to seek the advice of a RE professional in your immediate area that has a strong knowledge of local statistics and market trends and have them do a Comparitive Market Anaylsis (CMA) for you before you make a final decision.
But make sure you get a RE pro that is truly giving you real time info and not just trying to hustle you into an Exclusive Listing Agreement.
http://julianalee.com/zip-code/95121-statistics.htm Also look at the sales price vs. list price graph. A green area on my graph indicates homes being sold for more than list (typical of a rising market) while red indicate homes being sold for less than list (typical of falling prices).
Trying to catch a peak is quite risky. Escrows take 30 days or so to close. Add another month to build up enough local sales to see a trend. It can easily take a quarter or even two to see that the market has made a consistent change. Once you've decided to sell it can take another month to get inspections and minor improvements completed to put your house up for sale.
Although for most cities the most homes are sold in late spring or early summer, prices do not follow the seasons.
Economic news has been relatively steady for some time and no major changes are predicted in the near future. Changes to interest rates are likely at some time in the future but I haven't seen any solid predictions.
If moving makes sense for you to match your personal desires, tax planning, and or retirement goals, now could be a good time to carefully look at your goals. Give me a call and we can chat.
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Over 20 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
What are your primary goals: Are you going to buy another home in Silicon Valley or will you be moving to another area? If you are buying and selling in this area, it also depends if you are buying up or downsizing. If you are moving out of the area, how is the real estate market in the other area you are thinking of moving to.
You can also look at historical home sales data for your area: http://siliconvalleyrealestatehomes.com/real-estate-market-t
Regarding timing and mortgage rates, if mortgage rates go up, it will have impact on the pricing of your home.
Home sales in your are are currently strong like most of San Jose and surrounding communities. Since there is no way to see the future, you need to ask yourself, do feel the market is going up or going down in the near future. It appears that the market will stay strong for the "near" future.
Good luck with your decisions!!
Owner, Silicon Valley Real Estate Team
Intero Real Estate
Helping You Make Good Real Estate Decisions
I thought you had to hold on for 2 years to avoid short term capital gains.
In regards to capital gains, if it's your primary residence and the gain in equity you will be receiving from the proceeds of the sale are under a certain threshold then you will not have any gain to worry about.
Feel free to email me if you have any more questions or want to discuss things further. I am always more than happy to help and give good advice where I can.
"Is it now the best time to sell...â€
You have fantastic input below. In an effort to boil it down to one main recommendation; and hopefully drop your anxiety and blood pressure levels, I offer the following:
As many respected investors have suggested, the general answer on when to sell is simply "Get out while the getting's good." Easily said; right, but how do you keep from leaving money on the table? Well, the truth of the matter is statistically only an exceedingly few very lucky souls exit/sell at the "peak" and enter/buy at the "low". These types of decisions can lead to "analysis paralysis". While data is an ally it's not useful unless distilled down to actionable information (data does not = information).
"...or I should wait more time?"
"Get out while the getting's good" Recommendation:
If you are seriously considering placing your home for sale DO work with a licensed RealtorÂ® who can prepare a Comparative Market Analysis (CMA), which other than an actual appraisal is the "gold standard" for approximating market value. Next, have your RealtorÂ® create a detailed "Net Sheet showing all the transaction costs (commissions, repair, escrow, etc.) and your estimated net profit at close of escrow. Do the same for a hypothetical purchase, if applicable, and make sure you take your plans to a Mortgage Broker/Banker to get a feel for current interest rates (email if you need recommendations) if you will be financing a new purchase after the sale of your home.
Based on your overall plans (up-sizing, down-sizing, financing, retiring, etc.) simply decide if you have reached your personal "get out while the getting's good" number for the sale of your home and any subsequent purchase.
Meeting with a local real estate professional might help you clear up the doubt associated with this decision.
You may even decide to rent out your current home and buy another and sell when you can realize more equity to sell in the near or far future. Rents are rising as well and we can go over the numbers to consider. You may qualify to buy with minimum 580 fico score and as low as half percent down payment program. It only takes a few dozen questions to qualify you in minutes and go over your options. I can go over your home value and other homes to purchase or whatever your choice is.
Here are some links to study and consider that I offer.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
9am till 9pm 7 days
Real Estate & Manufactured Home Specialist
Realty World Todd Su & Company
2030 Senter Road San Jose, CA 95112
(408) 599-4943 cell
(408) 297-8754 buss.
(408) 297-3059 fax
Your referrals are greatly appreciated