Friday, October 14, 2011

The past three months have seen an active market, although our biggest problem in July and
August was lack of inventory, Buyers were plentiful throughout the summer but the available
housing stock was limited in almost all price ranges. After Labor Day we saw many new listings
come on the market and because of pent up demand, those homes in nice condition and priced
well went into escrow quickly. The fall season is our “mini boom” season and if September is any
barometer of things to come, we could see continued demand throughout the rest of the year.
The Federal Reserve has indicated that interest rates will remain low until at least the middle
of 2013. As we mentioned in the last newsletter, the High Balance Conforming Loan limit of
$729,000 has been reduced, and as of October 1, the new limit was converted to $625,000. The
interest rates are the lowest they’ve been in 60 years - that’s 1951!. The last time interest rates
were this low, gas was 19 cents a gallon, a postage stamp was 3 cents and a prominent DJ, Alan
Freed, had just coined the term “rock and roll.”
Mill Valley is experiencing a “window of opportunity” for sellers that is not being widely exploited. The 33% pending rate of listed
homes in Mill Valley as of October 5th is historically high. Homes that closed escrow in August sold for an average of 97% of the list
price! The problem is that while there is a healthy upward trend in new sales, there is a negative trend in new listings.
Why such strong demand during such perilous economic times? Affordability. So if you’ve been waiting for prices to hit bottom before
placing your home on the market, please email or call us. We will gladly provide you with a detailed analysis of the current marketability
of your property. If you are planning to sell in the next six months, this could be a great time to start preparing your home for
sale. Don’t forget, more now than ever, homes priced competitively and in move in condition are still selling the fastest and for the
highest price.
Add to all of this continued near record low interest rates,and it's time to get busy prepping to sell. Speaking of rates, at these low levels, a buyer can't go wrong jumping into the market. Call us--we'll help you make it happen!


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