No one can make market predictions. When COVID first hit in 2020, there was a 3 – month dip in the Real Estate Market. Most people pulled back from buying because they envisioned a collapse. That moment turned out to have been the best possible time to buy in the past two years.
Psychologists tell us that even experts are bad at market predictions. It turns out that flexibility is the skill most associated with being good at predictions. Flexibility is also what you need to avoid the stress of the market going up or down when you are trying to decide whether to buy or sell. I believe that relying upon your life circumstances to tell you when to move is more important than market forces.
In 2020 in Montecito, 79 houses sold for over $5M and 217 houses sold for less,making the median price $3.6M. In 2021, 141 houses sold for over $5M and 143 houses sold for less. Prices were up 39 percent – that’s 3.25 percent per month. The median price $5M home went up $160,000 per month!
Although prices have increased dramatically, people still approach the market hoping some how that they will buy at the bottom and sell at the top. This is just wishful thinking. Instead, I suggest people buy a home when it fits into their lives, rather than when they think the market is best.
Montecito Market Report
Since the average homeowner in Montecito only moves once every 10 years, it’s better for you to focus on your life and use me to know what is going on in the market. Flexibility is more valuable than following last year’s sales and marketing methods.
Unfortunately, there are Realtors who will urge buyers to pay too much and will urge sellers to ask too high a price, especially as the market changes. Collaboration between Realtor and client are key, and flexibility is essential when marketing a property in today’s market. It’s fine to ask your Realtor for advice, but keep a cool head because things can change quickly.
How will moving or staying in your home impact your life? Would you be happier in another location, perhaps closer to your kids? Or is staying where you are right for you? As this New Year begins, ask yourself “Could this be a good year to change homes?” If you think the answer might be yes, give me a call and let’s talk about it.
Client Talk…
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