On real estate 

Fall is beautiful in our Foothills, and the cooler weather and seasonal instincts to feather one’s nest before the holidays usually lead to a brisk uptick in sales.

Over the summer we experienced a noticeable shift in the market as inventory grew and buyer traffic slowed. Interest rates are the talk of the town, and the Federal Reserve is expected to keep moving rates up through 2019.

Thirty-year fixed rates hit five percent last month and could be headed higher soon. Higher mortgage rates reduce buyer’s purchasing power, but so far, the small increase of onequarter to one-half percent has not been a factor in reducing sales.

Lenders are rolling out new loan programs to cater to a wider pool of homebuyers, including selfemployed borrowers and investors.

Buyers appear to be much more cautious in making purchase decisions, not so much because of mortgage financing, but due to rising home prices. With demand finally slowing down, we are starting to see a trend toward price reductions on existing home listings.

Price growth is slowing, but certainly nothing to panic over. The year 2018 likely will show an increase in median home prices around five to six percent, a nice solid sustainable gain, and one that should make both sides of a real estate transaction happy.

Inventory is growing, and competition among current listings is nudging sellers to lower list prices, especially if a property needs updating. Some 40 percent of active listings were reduced by an average 4 percent in August when inventories jumped 17 percent.

Today’s homebuyers are willing to pay top dollar for a home with modern finishes, but will often walk away when too much work is needed.

Sellers need to consult with their Realtors on what to do to prepare a property for sale, and whether staging will enhance appeal.

We are seeing more contingent offers as multiple years of rising prices has homeowners flush with equity to move into more suitable digs. Aslower market the last quarter of the year means contingent offers get a little more respect, but most sellers still want to see a buyer’s property in escrow before opening negotiations.

If you are ready to move up or down, get your property on the market now if you want to be in a new home for the holidays.

Adriana Donofrio Podley Properties Glendora (626) 926-9700 • adrianad@podley.com