With all the news about interest rates and mansions selling for the price of shacks, many people are asking themselves, “Is now the time to sell our home?” The answer to that question depends heavily on your situation.
If you are a distressed home owner who may at some point in the future or currently is facing foreclosure, then the sooner you can get your home on the market, the sooner you can move on from your situation.
But if you didn’t take part in the real estate fiasco of the last five years, then now may be the best time for you to consider getting the home of your dreams at discount club store prices! There are many other reasons that you should consider selling your home and today’s market including:
Our market has increased in value:
Yes that is true! Our market here in the Manteca, Lathrop, Ripon, Tracy, Mountain House area has seen an increase in prices. “How can that be? I just saw on the cable news channel that we may double dip!” While national and world news gives us great information on a national and global level, they know nothing about our local area.
According to Zillow.com a national real estate information provider, the national median home value declined from $188,000 in July of 2009 to $182,000 in July of 2010. That’s a drop in value of almost 4 percent.
Contrast that with our local San Joaquin County market with a median home value at the end of 2009 of $168,000 increasing to $177,000 year to date! That’s an increase in OUR market of over 5 percent! So even though it is great to have a national and global perspective, you also need to know what is happening in your own back yard, and the grass is green.
Larger move-up homes are cheaper than ever:
If you have ever considered getting a bigger home, now is the best time to make the move. Thanks to the downturn in housing, you can purchase a home in the desirable Villa Ticino area of Manteca with 5 bedrooms, 4 bathrooms, over 3000 square feet, in ground pool and much more all for only $345,000 as of today. Compare that to a few years ago when it would have sold for over $500,000 maybe even touching the $600,000 range! Deals abound in the move up market and now is the time to take advantage of the prices.
Interest rates are incredibly low:
Interest rates as we all now are below 5 percent currently for owner occupied mortgages! That means if your current 1500 square foot home you purchased in 2000 for $150,000 with a 30 year fixed mortgage with an interest rate of 7 percent your total payment may be around $1,200 a month. But if you sold that house today and moved up to the previously mentioned home your payment would be just $2,200 a month. That’s only $1,000 a month more for DOUBLE the house!
And downsizing your home can yield you great value as well. Even the lateral movers are seeing great deals not just on the interest rates of their mortgages, but they can now afford to live in the neighborhoods they always wanted to before.
Have you considered renting your current home?
Many move up buyers are kicking their financial portfolios up a notch by turning their primary residence into a cash flow machine thanks to today’s low interest rates and relatively high rents. An older 4 bedroom 2 bath house in Manteca is currently selling for $129,900 and a similar home around the corner is renting for $1350 a month.
That means with a 30-year conventional loan the mortgage is only $760 and the possible rental income is $1350, making for a cash flow of $590 a month! Money may not grow on trees, but it seams to be growing in Manteca!
With a positive cash flow from their rentals, homeowners can move up and enjoy a bigger and better home they have desired for a long time.
So weather you are looking to move up, are in a distressed financial situation and facing foreclosure or are just thinking about taking advantage of our rental market to finance your dream home, now is by far the best time to sell and make the move.