WHY SELL YOUR HOME NOW?
Why sell your home now? Home values have appreciated significantly in our area this year. King County is practically its own micromarket of real estate activity. Demand exceeded supply for the first time in years and now inventory is depleted. We all know mortgage rates are at historic lows. Providing potential homebuyers with additional motivation to get off the fence and buy. But how long will they participate in bidding competitions for homes they seek? If history tells the tale, it wont last long.
Firms Sound Off on Rising Case-Shiller Index (DSNews.com)
What does that mean to the typical homeowner?
“Following the news from Case-Shiller that home prices rose in April for the first time in seven months, IHS Global Insight and Capital Economics both released commentaries speculating on the unexpected news and the housing market’s future.” IHS did, however, include a warning to restrain optimism.
“Have we hit bottom? It is tempting, but premature to conclude so. The number of foreclosures working their way through the pipeline suggests that prices could take a turn for the worse, especially if the US economy weakens.”
So if/when the foreclosure pipeline opens the prices could take a turn for the worse. Hmmm.
Why sell your home now? Institutional REO holders (asset managers) know this as well. Although they can’t work as fast as the individual homeowner they can recognize and respond to a trend that reduces their losses and may even provide them with a profit. And they have several million houses to release. What will that do to the price spike we’re all experiencing right now? It is reported they (the holders of REO’s and foreclosures and short sales) still have 80% of their inventory being held in abeyance. Hmmm. 80% of several millions of houses. Could that affect your home value?
Why sell your home now? So do you wait and react to the market trends or move in anticipation of them? Do you have your own professional to advise you on this? Or do you follow real estate full-time as some of us do? This is another historic time in the real estate market that will be talked about for decades to come. So will you be among the people delighting in the memory or disdaining the record?
Why sell your home now? Even a short sale, which is much kinder on your credit, will command a higher sale price when the market is most favorable. Which puts you in a better financial position.
Many people that were hopelessly underwater last year are able to reach the surface with a snorkel now...combining that with the current mortgage rates... what was vitriolic is now viable.
Consider all the factors that concern you. Get a professional opinion. Get online and do some homework. Get ready. Get set. Decide.
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