This morning I went to the site of ActiveRain member, Ann Dail, Broker/Realtor, Baton Rouge, Louisiana. Watching the TV News reports on the devastating floods in that area, I wondered about all the Home Owners and especially those without flood insurance. I came across Ann's post on interest rates and felt it pertains to all of us in the real estate field and clicked on re-blog. Have a great day, Rainers.
Why Interest Rates are Improtant to Sellers, and Why They Shouldn't Wail Until Spring to List.
This time of the year I am asked if Sellers's should wait until spring to list thier home. Or, I am asked what is the best time to list my home. The facts are that homes sell every month of the year, including winter and the holidays. Some of my most productive months have been November thru February. Here I would like to summarize 3 reasons why sellers shouldn't wait to list their Baton Rouge Homes.
1.. Interest Rates Are Important to Sellers. Most experts agree they will rise in 2016 and 2017. This is extremely important not only to buyers but also to sellers and here is why:
As interest rates rise, buyers fall out of being able to afford a home they proviously qualified to buy. As fewer buyers are available, this can force prices down or increase length of time on the market. And an interest rate jump affects higher end subdivisions even more than starter neighborhoods.
2. Transferring Buyers Don't Wait Until Spring. Many corporations transfer employeed from November thru February which are often slower business times or year end periods when new budgets kick in by the next fisccal year. Transferring employees are highly motivated and make decisions quickly unlike many local buyers who take several months to decide on a home. They look and buy and close contracts quickly and don't wait until spring as they want to be selled quickly to start their new jobs. Two of the three corporate moves of my family were between November and Christmas. You don't want to miss out on these valuable serious buyers.
3. Gains in Equity Can be Offset by Rising Interest Rates. Some feel they will wait a year or two to build more equity before moving. The problem with waiting now is that interest rates could rise. Interest rates are important to sellers as explained in the above video. When increasing rates decrease the number of homeowners who can buy your home. then the market can drive down the price you can ask thereby negating equity build up from waiting.
Another reason interest rates are important to sellers of Baton Rouge Homes, is that as interest rates rise the amount of home you can buy after you sell also declines. So, whatever equity you gain may be off set by the loss in buying power in your new home.
In summary interest rates are important to sellers and timing of your listing is important to sellers of Baton Rouge Homes to get the most equity to reinvest in your future home, to capture transferees who must buy now, and to have largest number of potential buyers possible to get the most money in the fastest possible time.
If you are looking to sell or buy a home, we would be honored to help you!