Learn How to Sell a House Fast in Irvine, CA
Worried about a potential housing crash affecting Irvine, CA? Rising interest rates and high inflation have many home buyers, sellers, and realtors concerned about the future. If you’re a home seller, you may be wondering how to sell a house fast in Irvine before the market conditions get any worse.
With inflation at 8.2% and interest rates at nearly seven percent, many home sellers are understandably worried about whether they should sell their homes fast before market conditions get any worse.
In this post, our team at Your Home Sold Guaranteed Realty – Rudy Lira Kusuma Real Estate Team will discuss whether we’re heading towards a housing crash and what you need to know to sell a house fast in Irvine, CA.
What Causes a Housing Crash?
Many people hear the word housing crash and immediately get nervous. But what exactly is a housing crash? How does one begin?
Housing crashes tend to follow housing bubbles that grow to an unsustainable level before bursting. Housing bubbles are a market condition that combines low supply, low interest rates, and increased demand. This causes home prices to quickly rise to unsustainable levels.
When this happens the bubble bursts, which leads the housing market to crash. Keep in mind that high prices on their own don’t signal a crash– it’s only when multiple factors combine to create an unstable situation.
Factors like lower mortgage rates, looser credit standards, and more investor speculation affect whether a housing bubble grows to unsustainable levels.
It’s also important to note that housing crashes can occur on a city, state, or national scale. In addition, housing crashes can occur with or without a recession. However, housing markets are closely tied to the economy’s overall health, so they may end up influencing the direction of the economy if they occur on a wide national scale.
What Happened in the 2008 Housing Crash?
The most well-known example of a housing market crash is when the housing bubble burst in 2008. Of course, this crash coincided with the Great Recession. So, what happened to cause these events?
Throughout the early 2000s, the housing market had been thriving, partially due to looser credit standards. But home prices eventually hit a peak in 2006 before declining. This culminated at the end of 2008, when the Case-Shiller home price index recorded the largest price drop in its history.
Many homeowners were suddenly unable to pay their mortgages or were even left with homes worth less than their mortgages– known as a negative-equity position. This meant banks and lenders were on the hook for the mortgages. The resulting credit crises led to many foreclosures and the resulting recession.
Are We Headed Towards Another Housing Crash?
The housing market has enjoyed a period of hot activity in recent years. However, current recessionary conditions and high inflation has led to a rise in interest rates, which has many homeowners wondering whether we’re headed towards a crash.
First, it’s important to distinguish a hot market from a housing bubble. Bubbles are relatively rare and are usually defined by unsustainable growth in housing prices and low mortgage rates. Hot markets, on the other hand, are much more common. They’re influenced by local market conditions and the levels of supply and demand in that particular area.
While it’s impossible to predict with 100% certainty, most real estate experts seem to agree that we’re not headed towards another housing crash. This is because demand is high, supply is still low, many home buyers are more creditworthy, and lenders have stricter lending requirements.
In fact, while home sales in June 2022 dropped by 5.4%, the median sales price was still up 13.4% from the same point last year.
High interest rates may lead to lower housing prices or an overall plateau in prices, but this doesn’t mean there will be a sharp crash like the one in 2008.
How Do iBuyers Affect the Housing Market?
Another factor to consider when considering selling a house in Irvine, CA, during a housing crash is the role of iBuyers. iBuyers are companies that buy homes as-is, directly from home sellers. The seller does not need to fix the home, list and market it, or work with a realtor.
iBuyers use an algorithm to determine what to pay for the home. They make their profit by fixing up homes and selling them for a profit.
iBuyers are relatively new, but they have the power to influence the local market in a particular area. They sell these flipped homes for prices that ordinary home sellers struggle to compete with, which can affect overall prices in the area.
Ultimately, it’s best to get the opinion of a realtor about the potential effects of iBuyers on the local housing market. They can help you decide when and how to sell your home in a way that still gets you top dollar.
4 Tips to Sell a House Fast in Irvine, CA, During a Housing Crash
1. Price Your Home Right
If you need to sell a house fast in Irvine during a potential housing crash, it’s more important than ever to price it accurately.. You’ll likely have to price it lower than you could have before interest rates became high.
Pricing the home too high will scare away buyers looking for cheaper deals to compensate for more expensive mortgage rates. However, pricing too low means you miss out on potential profits.
Working with a realtor with in-depth knowledge of the local area is essential in a recession. They have specialized knowledge of the pattern of home prices in the area and can come up with an individualized pricing strategy in a way that iBuyers and other algorithmic methods can’t.
2. Make Your Home Move-In Ready
Another tip to sell a house fast in Irvine, CA, during a housing crash is to make sure it’s move-in ready. In tough economic conditions, home buyers probably don’t have the necessary funds to renovate or repair a home.
Investing in your home to make it ready for its next owner will help it sell much faster. This includes getting a pre-inspection, making necessary repairs, hiring a professional cleaning service, and ensuring that furniture, decor, and colors are as neutral as possible. A realtor can also point out other specific things home buyers in the area are looking for.
3. Get Your Timing Right
Depending on your situation, selling a house during a housing crash can be tricky. It goes without saying that it’s better to sell a home before a recession, where lower housing prices mean you may sell for less than you initially paid.
If you can afford to wait, it may be better to do so. But if you need to sell now, make sure to work with an experienced realtor who can help you carefully consider prices in your local area. They can help you decide how long to wait before housing prices in the area fall even lower.
4. Decide if You Also Need to Buy
If you need to buy a home after selling your current one, you may not need to worry as much about timing. A home is an investment like any other– if you want the most profit, your goal should be to buy low and sell high. So if you sell your home at a lower price during a recession, this also means you’ll be able to buy one at a lower price.
And as the economy recovers and your equity grows, you’ll eventually be able to sell it at a higher price than what you originally paid.
Our Team Can Help You Sell a House Fast in Irvine, CA
If you need to sell a house fast in Irvine during a tough housing market, you’ll need a local solution. At Your Home Sold Guaranteed Realty – Rudy Lira Kusuma Real Estate Team, we recognize that the current economy has many home sellers worried.
That’s why we’re proud to offer our services and unique guarantees. These guarantees set us apart from other realtors in Irvine, CA.
We have specialized knowledge of the local housing market in Irvine, Rosemead, and the surrounding communities. Over the years, we’ve helped thousands of families in Southern California sell their homes fast and for top dollar, and we know we can do the same for you.
Unlike other realtors, this isn’t just an empty promise. Thanks to our Guaranteed Sale Program, we can guarantee your home will sell for a certain price and within a certain timeframe. Otherwise, Rudy and his team will purchase it themselves.
To learn more about our home seller guarantees, or for more information on working with us, give us a call at 626-789-0159 or fill out the form below.
