Thank you for your question:
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