“The national median home price rose 8.2% year over year to $323,800 in July (2020). This is the third time in four months that prices have hit a new all-time high.” — Redfin
In my previous blog “Trending: Is Now the Right Time to Buy a House?” I promised that in an upcoming blog, I’ll discuss in detail why I think [home sales are rising] and what this rising home sales trend means for you.
Here we go.
For this blog, I sat down with Shawn D. Morey of Dwell Real Estate Group. Mr. Morey and I met while both pursuing USC’s Dollinger Master of Real Estate Development program in 2016. He is a Realtor and Principal Broker at Dwell Real Estate Group. He has over 10 years of real estate brokerage and development experience, and is my go-to expert for all things related to architecture, multi-family brokerage, property management, development, and investing.
A quick refresher:
Residential homes are currently in scenario #3 and Shawn Morey shares his boots-on-the-ground Realtor perspective.
There are several demand drivers for homes today:
As an anecdotal reference point, Shawn’s affiliate recently listed a house for sale in the Eagle Rock neighborhood of Los Angeles. He put it on the MLS at 6am and by 12pm (lunchtime!) he had 77 offers and most were over asking price. He noted an increase in “Sob Letters” (that’s industry jargon for a nicely written letter from the potential buyer pitching a personal/family story in the hope it will score them an accepted offer). Someone even sent flowers to the selling agent just to get noticed!
It is imperative to have both a great realtor agent and in-place lender when you make an offer. If you don’t have a pre-approval then many sales agents won’t even consider you.
I‘m personally listing my Riverside, CA property to see if any crazy offers come in. And in this market, that is VERY possible.
If you own a property, I strongly suggest that you at least look into selling unless you have a buy and hold forever strategy, or if you’re going to wait for the next cycle for this opportunity to come up again.
What’s Huber’s strategy? Sell, capture equity, down-size, and be very patient.
Contact Shawn Morey if you have any questions as to the specific home selling process and for any additional real-time market shifts that he’s seeing.
Disclaimer: I am not collecting any referral fees from Shawn. He is just a close friend that I want to see do well and that I personally trust — he is a rare combination of both brains and ethics!
I’m happy to engage with you in the comments so that everyone can learn. If you prefer to share privately, feel free to email me at firstname.lastname@example.org
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