It’s the first week of September and our hot desert weather will begin to slowly cool down. But that’s not the case with our real estate. It appears the coronavirus has created ideal conditions for dramatic spikes in Coachella Valley home sales. With so many working from home, people have realized they can live anywhere. In comparison to pricey, prime areas of California, our desert communities look extremely attractive.
Another component adding to home sales are low interest rates. But recently Freddie Mac and Fannie May threw a curve ball and unexpectedly announced a new finance fee of 0.5% assessed for cash-out and no-cash-out refinances. Many in the mortgage industry voiced opposition to this new policy so Freddie Mac/Fannie May announced the fee will be postponed from Sept 1 to Dec 1 and that loans under $125,000 would be exempt. So, it you’re thinking of refinancing, do it very soon.
Did you know that almost half – 45% – of people who bought a home in the past year made an offer on a property they hadn’t seen in person? That’s up from just 28% during the same period last year. Sight-unseen offers will likely to continue to climb in the coming months. The pandemic has changed the way many people view homes. With that in mind, make sure photos of your home and property are photographed by a professional before you list it in the MLS. You are selling in a competitive market with low inventory.
Speaking of listing, we’re seeing a significant number of home appraisals come in below the selling price. When that happens, it requires buyers and sellers to come together to renegotiate. This is going to continue to happen when we’re in an environment where appreciation is rapidly happening. As inventory shrinks, buyers are increasing their offers.
So how long can the market ride this wave? Nobody knows. Many people are buying now because they’re afraid they’ll miss out and will have to pay more in the near future.
In the meantime, Sellers are quickly receiving buyer offers.
So, if you’re thinking about selling, let’s talk about your home’s current value. And if you’re thinking of buying, let’s talk about the homes that fit within your price.