I wish I had a crystal ball to show what the real estate market in the Tri-Valley was going to do. In reality, nobody has this magic ball, but we are able to intelligently guess what is going to happen by considering a variety of indicators and subjectively concluding a predictable future. If you believe that markets actually do have cycles then it’s pretty darn simple. Expect for Livermore and the surrounding market to plateau over the next 18 months and then gradually hit a down cycle. If you are an investor, now is NOT the time to buy for cash flow in Livermore and the surrounding area. Most pricing is just too high in the detached market. Muli-units need to be viewed independently.
If you are first time homebuyer or a move-up Buyer and are considering a long term purchase, now is the time to buy. Holding long term will weather any market decline. A long term strategy makes people wealthy with real estate. If purchasing for a shorter duration, lets say less than 4 years, you may want to consider a 5 or 7 year variable rate loan, and make sure you get a good deal when you purchase.
In the short term as we enter the August, 2014 Tri-Valley market, we will see increased market days, higher inventory and return to a more balanced real estate market. Sellers will pay a heavy price if they over price their homes. Nicely priced homes will still sell fairly quickly. It’s critical for Sellers to understand pricing dynamics and trust their agent with pricing recommendations.
Contact me today for a complimentary market analysis or to discuss your personal real estate needs. We are happy to help you here at the Swanson Real Estate Team.
Natalie Swanson, Team Leader
Keller Williams Tri-Valley #01709115
I help small businesses be more successful.