Better Homes & Gardens
My favorite book on economics is Aftershock, written by the same economists that predicted the dot com bubble and all the rest of the crises we have been experiencing. I am in agreement with them that the political control of our economy right now has created some illusions that cannot be held forever. Namely, with unemployment as high as it is (we have the lowest participation of actual employment in the workforce since 1978- forget what the press is printing because it doesn't count those that fell off of the unemployment rolls) there is still alot of distressed homeowners. Our debt continues to rise affecting the value of our dollar, and the FED cannot print enough money once the dollar destabilizes. The interest rates will rise and the FED will no longer be able to control it. If the mortgage rate rises to 10%, they expect a 30% decrease in property values.
From a buyer's perspective, they are looking at the same affordability as now. A buyer can qualify for about 1/3 of their income in qualifying for a loan. If interest rates go up, the price of the home being reduced will still mean the same monthly payment.
From a seller's perspective, you have a window of opportunity. Supply and demand have forced prices up quicky. This will continue until interest rates rise, so I expect that you'll have a very clear indicator as to when the values will shift. If you stay in the market, expect to be in it until we fix unemployment and THAT is more difficult to predict. And if you want to sell now? There's some creative ways to guarantee the best price, often above appraisal value.
The decision is yours, dependent on what you expect to happen in the market, but I suggest you pick up the book Aftershock. I really believed what I read to be accurate.
Because of low inventory homes that may be otherwise difficult to sell are now selling. Talk to your tax person before selling to avoid any surprises.
I think if you wanted to sell you would be amazed at what you'd get. I think we are pretty much back at what the prices where in late 2003 or so.
The problem is...? what are you going to do after... do you have an exit strategy... do you want to move up and do a 1031 Tax Deferred Exchange into something else..?
My suggestion is to contact an agent or broker to have them prepare a comparable market analysis to give you an idea what those properties can potentially sell for.
Rental market is good as well so that is also a good option.
I hope this helps.
Make it a Great Day...
It's a fabulous market for sellers right now. It is absolutely a seller's market and a great time to sell. Inventory is low and the buyer's demand is high, which is a formula for more money for you.
On whether you should sell or rent them out would depend on your financial goals. When you bought them was your intention to hold on to them and rent them out for a monthly income? Or did you intend to buy and wait for the market to go up and sell and use that money for something else?
The real estate market is cyclical and will always go up and down. I would think whatever you decide that it would be in your favor.
Lyon Real Estate
So, you can almost name your price, but if you are looking to buy something else, STAND IN LINE.
Nancy S Bergman
Realtor - Lyon Short Sale Certified
DRE # 01893550
Lyon RE Downtown
2801 J Street
Sacramento, CA 95816
Let me know if you need any further assistance.
Any decision whether to sell or rent has to be based on your financial goals, need s for the cash, etc.