MARKET UPDATE

In all honesty, I could just repeat here this month exactly what I said last month! Not too much has changed. Buyers are still desperate for homes to but sellers are still sitting on the side lines. While we are certainly seeing more homes come on the market than we did in January or February, we are nowhere near meeting the demand of buyers. In Portola Valley, only one home closed escrow in all of February, although another 10 are currently under contract and pending sale. There are just 18 homes for sale, 7 of which have been on the market for 9 days or less. Also, 6 of the homes currently for sale are for $5 million or more and even in this market, this high end is taking longer to sell than homes priced under $2 million.

Very often homes are selling in 1 week or less. And actually, many would sell in 1 day but currently giving full exposure to the market for at least a week results in the highest price for the seller. This is avery important part of my personal marketing strategy when selling a home. Preparation is still key as well. The return on investment is amazing. And, I can review with you exactly what I think will be the best improvements for your home plus I can coordinate getting them done for you with my team. Let’s talk. It would be my pleasure to represent you.

MORTGAGE RATES

Average U.S. rates on fixed mortgages have risen slightly this year as new data continues to show a surprisingly strong pace of new home sales. Rates still remain near historically low levels. Mortgage rates have risen about a full percentage point since hitting record lows roughly a year ago. The increase was driven by speculation that the Federal Reserve would reduce its $85 billion-a-month bond purchases. Deeming the economy to be gaining strength, the Fed proceeded last month with planned reductions of its bond purchases, which have helped keep long-term interest rates low.

The average rate for the 30-year loan increased to 4.37% from 4.33% last week. The average for the 15-year mortgage rose to 3.39% from 3.35%. A recent report from the Commerce Department boosted expectations that the spring home buying season will be solid enough to lift the overall economy. Sales of new homes rebounded in January to the fastest rate in more than five years.