If you’ve read some of our most recent posts, you’ll know that demand for homes is still strong. The number of homes being offered for sale remains below historically balanced levels. If you are thinking of selling your home but are not sure what to do, consider these points:
1. There Is Less Competition Now
Housing supply (nationally) just dropped to 5.1 months, which is under the 6 months’ supply that is needed for a normal housing market. This means that, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home owners who are thinking of selling because it should mean strong interest and higher home prices.
But, you must remember that timing is everything. Additional inventory is about to come to market.
There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.
Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).
The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.
2. The Process Will Be Quicker
Simply put, the time before the holidays is quieter and your transaction will run more quickly and with less competition through the closing process. BUT, if you end up waiting and are trying to close during the holidays, the potential for delay increases. Staffing levels drop…people travel to visit family…the people that remain are distracted (however slightly) by the holidays. Getting your house sold and closed before those delays begin will lend itself to a smoother transaction.
3. There Will Never Be a Better Time to Move-Up
If your considering moving up to a larger, more expensive home, you should really consider doing it now.
Why?
Prices are projected to appreciate by over 23.5% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.
4. It’s Time to Move On with Your Life
This is perhaps the most overlooked and important reason to consider taking action now rather than later.
Look at the reason you thought to sell in the first place and determine whether it is worth waiting. Is money more important than living closer to family, friends or shortening your commute to work? Is money more important than living in the neighborhood you’ve always dreamed of? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.
