Today I wanted to talk about why it’s critically important to be pre-qualified before looking at homes as a buyer. While I know getting a pre-approval on a mortgage is not as fun as shopping around for houses, it’s very important to find out what your financial situation is before we find the home for you. Otherwise, you could end up scrambling at the last minute and with our market’s low inventory, that lapse in preparation could cost you the house.
Today I wanted to discuss whether or not you should continue to list through the winter months/holiday season. Conventional wisdom would tell you not to, however, I think it is a good idea to be on the market now. If you take a look at the numbers, inventory is down 7% during the winter/holiday season but the asking price for homes is down 0.3% (essentially 0%) meaning less inventory but not lower prices. Also, buyers in the winter time tend to be more serious because if you are out looking for homes with family events and hectic schedules, you want to buy a house.
Trulia Chief Economist Jed Kolko reveals the latest findings from Bubble Watch , revealing whether home prices are overvalued or undervalued relative to their fundamental value. In the fourth quarter of 2013, home prices were 4% undervalued despite having rapidly rising over the past year. But in Orange County and Los Angeles, home prices are more than 10% overvalued.Trulia’s Bubble Watch reveals whether home prices are overvalued or undervalued relative to their fundamental value by comparing prices today with historical prices, incomes, and rents. The more prices are overvalued relative to fundamentals, the closer we are to a housing bubble – and the bigger the risk of a future price crash.