In December, Coachella Valley inventory decreased 167 units and on January 1st it stood at 2,093 units. Inventory remains near the highest levels of the last four years, but it is still 1,000 units less than what’s considered normal.
Reasons Sellers Hesitate:
- Fear of Not Finding a Replacement Home: With low inventory and fierce competition, sellers worry about selling fast and not finding a new home.
- Low-Interest Rate Attachment: Many are locked in with record low-interest rates from pre-May 2022, making them reluctant to transition to higher rates.
- Concern Over Capital Gains Tax: The risk of incurring substantial capital gains tax has kept many potential sellers on the sidelines.
- Rising Property Taxes: Selling and then buying can mean a significant hike in annual property taxes.
- Missed Peak Market Opportunities: Some homeowners feel they missed out on the market peak between April-June 2022 and hope for better conditions.
- High Improvement Costs: The pandemic’s effect on material costs has made home renovations pricier.
- Insurance Premiums Concerns: Insurance rate hikes and limited choices might dissuade potential sellers.
- Seniors Aging in Place: Many seniors are opting to adapt their homes and stay put due to the pandemic and rising retirement community costs.
While these concerns are valid, it’s essential to understand that a combined effect of these factors might be making homeowners overly cautious, potentially sidelining their dreams.
How I Can Help:
- Dream Discussions: I am encouraging homeowners to discuss their dreams. It helps to vocalize and keep them alive, serving as a motivation.
- Staying Top-of-Mind: I am nurturing relationships with homeowners, so when they decide to make a move, they have a trusted advisor.
- Facing the Reality: Life moves forward. I am urging homeowners to question if they’re letting market conditions steal their dreams. Remember, there might come a time when it’s too late to pursue them
If you’re considering selling, or if you know someone on the fence, let’s turn challenges into opportunities. Every market presents opportunities, let us help you find yours. And remember hiring a local expert is key.
photo design by: Fotografixgal Designs, United Kingdom