Is This The Right Time To Sell Your Home?
Should you sell your home now or should you wait?
Here are some reasons why this is the perfect time to sell your home:
There is a Higher Demand for Homes on the Market
One of the most basic concept of economics is supply and demand. According to the Florida Association of Realtors closed sales of single family homes in Brevard County, FL for August 2013, are up by 11.5% since August 2012. The report also shows that there is only a 4.1 month inventory currently available in the market. In a normal market there is about a 6 month supply of homes. So we can see that available inventory is somewhat low. There are buyers out there who are seriously looking to purchase a home. Sellers of homes sold recently have seen multiple offers on their home. Currently competitively priced homes are selling at or close to their asking price.
Higher Interest Rates Erode Buying Power
Interest rates have remained at historic low levels for a long time now but for how long will they remain so? Most experts agree that they will rise within the next twelve months to eighteen months. Sellers should take into consideration that this will reduce the number of buyers who will remain eligible to purchase their home. As interest rates rise, the buying power of buyers will be reduced. A buyer who can afford a 200k home today will be able to afford a home for less than that amount.
Market Inventory Will Increase – Resale Homes and New Construction
Remember I talked about the basic concept of supply and demand? Also remember all the homeowners whose equity had eroded and they were under water the past few years? Many of them have regained lost equity as home prices have risen. They have been waiting to sell their home for the past few years and will now enter the market. New home construction is about to rise too, which will compete with resale homes.
Act Now or Pay More Later
Sellers who think they are going to wait a year or may or may not net more for their current home. However as interest rates rise, the total cost of the new home will costs thousands more in interest and taxes; over the life of the loan. The same is true for buyers who do not currently own a home. They too will save thousands of dollars over the life of the loan.
Call your real estate professional. She or he should be able to help you decide what your options are based on your individual situation. One of the most important things will be to price your home competitively so as to open the market for your home versus closing the market.
I have helped many sellers and buyers achieve their real estate goals over the years and I would love to add you to my list of satisfied customers.