If you're a homeowner sitting on the fence wondering if it may be the right time to sell or not, I have to say, "Just Do It!" Before it's too late. According to Zillow, mid-March to mid-April is the best time to hang out the "For Sale sign because homes sell 15% faster and for 2% higher than the average sale. But things are changing and the seller's market is swaying a bit more towards the buyer.
"It's still predominately a seller's market, but less so than the last year or two," said Stan Humphries, Zillow's chief economist. "Some advantages are moving back to buyers; but largely and broadly ... it's still favoring the sellers."
If you're considering if you should sell or not, here are a few things to ponder:
1. Interest rates are LOW - Did I say low? I'm sorry, I meant to say "really, really, stupid crazy low". Because we are at historic lows when it comes to interest rates, more and more buyers are jumping on the buying bandwagon. And with the recent hint from the Federal Reserve that interest rates will be climbing soon, many homeowners are listing for sale now before rates go up and their left out of the market.
2. Very Low Inventory - currently the number of homes on the market is still very low which continues to drive prices upward slightly. This continues to cause the market to stay in a "seller's market" atmosphere. A typical market sees a 6-7 month supply of listings and according to the National Association of Realtors, The inventory of homes last month in February was 4.6 months. When the inventory is low, it increases pricing and causes multiple offer/bidding war situations.
3. Cash Buyers Are Dwindling - In the not so long ago past, all-cash buyers and investors drove the home sales and now the big acceleration of home prices has slowed considerably. According to Realty Trac, all-cash offers made up under 31% of home sales, the lowest number in 4 years. I worked with 2 large investors, Invitation Homes and Waypoint Homes, both who gobbled up a huge portion of the market buying homes for cash at considerable discount. Now they have nearly been priced out of the market as values rise beyond what is an acceptable price for their investment model.
4. To Expensive to Rent - The 15+% rise in rental prices could and should trigger renters to get off the fence and plunge into homeownership before interest rates increase. But the fact that rents are so stinking high makes it difficult for renters to save for the typical 3.5% down payment as well as closing costs. This is a perfect opportunity for parents to step in and help their kids realize the dream of homeownership.
Of course, there are numerous issues to address when deciding if it's the best time to sell. that is why it is crucial to meet with a professional Realtor with many years of experience soon to discuss your individual options. By "a professional Realtor with many years of experience", I mean ME, and by "soon" I mean NOW!