Death, taxes, divorce, and alike can force the sale of a home, but is it a good time for you to sell your home? The best time to sell depends upon several factors, including local market trends, economic conditions, and personal circumstances.

The supply/demand imbalance continues to put upward pressure on home prices in the Conejo Valley and through much of Southern California. The number of sales may be down, but marketing times remain historically low, and median home prices edge higher. Location matters and the Conejo Valley continues to experience strong demand, with homebuyers from the Greater Los Angeles area moving west. The work-from-home phenomenon provides an opportunity for Westside residents who work downtown to move to the suburbs and avoid things like crime, traffic, and homelessness. Our local median home price of $1,050,000 may seem high to us, but it’s very reasonable compared to the Westside.

The California and National economies appear on a path to avoid a significant recession, and the unemployment figures support the soft-landing scenario. . Home buying is largely an emotional event; few people “must” purchase a house, so residential real estate is mainly driven by how people feel. If consumer confidence holds up, our local market should do likewise. That said, local real estate prices may only appeal to the top 15% of California taxpayers and those with large down payments. Mortgage rates in the 7% range will dissuade some home buyers, which may lessen the competition between Buyers.. This trend has been quite common over the last several years.

Over my 35 years in business, we have helped thousands of clients relocate to new states. Some left to be closer to adult children and grandchildren. Some went for career advancement, while others left for economic reasons (to save money). Whatever the reason, I recommend renting in your new State long enough to get a feel for the community and the specific neighborhoods. More than a couple of my clients felt pressure to purchase a new home upon arriving in a new community and later faced regrets. When you start home shopping, we recommend confirming the property taxes in the State, County, district, and or township (all four in some cases) you’re interested in. Property taxes can vary significantly in other States and may be much higher than in California.

If you’re considering selling your home to reduce your monthly expenses, we recommend carefully reviewing the cost savings before pulling the trigger. Given the high costs of sale and 7% mortgage rates, many of our clients need to reduce their future sales price significantly to achieve measurable savings, for example:

• Sell for $1,200,000 and pay off a $700,000 mortgage @ 3.5%, $3,368/month plus $900/mo. Property taxes = $4,268/mo. and net $416,000
• Buy for $800,000 with $400,000 down and get a new $400,0000 mortgage @ 7.25% = $2,728/mo. +$400/mo. Property taxes = $3,128/mo.

The monthly savings would be $1,139/mo., but it costs roughly 6% to sell (5% for realtors plus 1% for fees and charges). With $72,000 in selling expenses and $1,139/month in savings, it will take five years to break even.

Deciding to sell your home is a significant decision, influenced by a myriad of factors both personal and market-driven. In the ever-evolving world of real estate, having a guiding hand can make all the difference. If you find yourself pondering the right time to sell, consider chatting with our friendly team at Contour Realty. We’re well-acquainted with the Southern California market and are here to offer insights, whether you’re just thinking aloud or actively planning your next steps. We value the trust and stories of every homeowner we meet – feel free to connect with us anytime to explore your options.