Newsletter Update - Dec 2016
The local real estate market mirrored much of what we saw in 2015 with low inventory being the one consistent factor. I don't see any real changes regarding inventory not only for this upcoming year but the following year as well. As predicted short term interest rates went up about three quarters of a point right after the election. For most buyers it wasn't significant in terms of monthly payments but critical in their qualifying, especially when they were just on the edge of qualifying. As an example on a one million dollar purchase with 20% down, with the old rate, that might have been their maximum borrowing power. With the current rates they now qualify for a home worth $925,000. Of course they can always choose to go with a 10/1 ARM as some buyers are now electing to do. They can sometimes qualify at the lower rate the ARM provides and if they know they won't be in the property long term this type of loan serves their needs.
There is still a tremendous amount of energy in our local market and I expect a 1-2% increase in values for the 2017. I ran into a few appraisal issues for the first time in years this last quarter but managed to resolves them via appraisal rebuttals. It's so important for agents to be there to meet these appraisers and have conversations with them before you meet them at the property. I provide excellent comps and even give them off market sales to validate values. I feel my 38 years of experience helps handle issues like these that might occur during a sale. Knowing the local market is one thing, creating proper expectations with all parties involved helps the transaction go smoothly.
If you are considering moving in 2017, I welcome the opportunity to meet with you. Not only will l establish value in our first visit, I will provide a net sheet showing what you would walk away with at the close of escrow. You will get a custom, detailed marketing plan and of course suggestions on how to stage your home and what small improvements can generate a higher value. I have a full time crew that works for me along with two buyer's agents, stagers, social networking directors, financial people, and I think the best escrow and title officers in the industry. As you know Re/Max is the number one company worldwide and the company I work for owns 17 offices from Santa Monica, the Westside thru the Palos Verdes Peninsula and for consecutive years I am the number one agent in Torrance for all of Re/Max. Let's get together and discuss your plans for 2017. I hope all of you have happy and healthy holiday season and a prosperous 2017. See you around the neighborhood!
Some of John Briscoe's 2016 Sales!
Thank you for your business!
And...I am never too busy for any of your referrals!