What a difference a year makes!

Prices have crept up throughout 2012, due to a shortage of properties available for sale, coupled with extremely low mortgage rates.  It is one of those very rare times when both Sellers and Buyers are benefiting from the market, with a slight advantage to Sellers at this point in time.   Multiple offers are becoming frequent again.   What’s on tap for 2013?   More of the same:

1. Low number of homes for sale (“low inventory”)
2. Low mortgage rates (“high demand”)

Wild Cards for 2013: 

• Mortgage interest deductibility:  any reduction or limit on tax deductibility will have a negative effect on home values.
• Unemployment:  currently at 7.7%.  A continued decline in unemployment should improve demand for homes and may improve supply as people move in / out to capitalize on new job opportunities.
•  Mortgage interest rates:  the Federal Reserve has indicated that they will keep rates low through 2013, but any uptick will dampen demand. 

What does all this mean for you?

• If you are contemplating changing your home for lifestyle reasons (downsizing/upsizing, better floor plan, multi-level to single level, reduce commute, better neighborhood), now is the time
• If you have dreamed of a second home, now is the time
• If you have dreamed of diversifying your investment portfolio or your IRA/401K portfolio, by adding real estate to the mix, now is the time!

I want to help you achieve these goals and look forward to acting as your “sounding board” for these important decisions.  If you are considering any changes for 2013, let’s talk now about how I can help you and your family make as profitable and pleasant a transition as possible.  My commitment to you remains unchanged:  candid, truthful and professional real estate advice and services.  Always!

Best,

Susan

415 925 3264

scoleman@fhallen.com