Is spring closer than we think? Depending on which Groundhog you witnessed today, you may have less time than you think to get your home on the market before the busy spring season. Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages. Here are five reasons to sell now.
1. Demand is Strong
Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy…and are in the market right now! Take advantage of the strong buyer activity currently in the market.
2. There Is Less Competition Now
Housing supply just dropped to 3.9 months, which is well under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last three years. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference). The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.
3. The Process Will Be Quicker
One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.
4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.3% over the next 12 months according to CoreLogic. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to rise by three-quarters of a percent by the end of 2016.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
Recently a group of agents were discussing the merits of Amazon Prime. We all love it. But, the problem becomes that Americans sometimes think every business operates the same. Even some real estate agents think instant gratification is possible in real estate.
It just isn’t.
Here is one of the better perspectives on this topic. I think it clarifies why buying or selling a home takes time. You have to be patient.
Knowledge is power.
Love builds a happy home and a happy home means you are well loved.
I can walk in a house and “feel” the love that lies within…I’m not making this up. It transcends our ability to make sense of everything.
Share your love today.
Real estate agents love a home that is decorated beautifully and always shows like a designer show home. I know I do.
But not everyone can spend the cash needed for a home to look like perfection.
A few simple suggestions that are cost-effective will help any house sell:
- Paint. Paint is the biggest thing that will change the look of any home you are trying to sell. Make the entire house the same shade of beige (with grey undertones) and white trim. It will make your house fresh and lend a cohesive look to the house.
- Clean. Buyers like the smell of lemon scented Pine Sol. Not really…but they like the smell of clean. Don’t overload the plug in wall flowers but DO mop the floors before buyers view your home. Clean bathrooms are essential so buy fresh shower curtains with fresh liners. It is the little things that make a really big difference. Oh, and make the beds. White linens sell homes.
- Light. Buyers like light and will be drawn toward a home that is shiny and light. Open all blinds, windows and in most cases…take down the old drapes.
- Paneling. More than any other dated item in a home….faux wood panelling is the kiss of death for most buyers. Paint it or take it down.
I’ll put more suggestions up in the coming days. Obviously, I have lots of them. The above items are not expensive and really can make the difference. The return on painting alone is great and will significantly impact the sales price of your home.
TransUnion recently released the results of a new study titled “The Bubble, the Burst and Now – What Happened to the Consumer?” The study revealed that 1.5 million homeowners that were negatively impacted by the housing crisis could re-enter the housing market in the next three years. TransUnion defined “negatively impacted” as…
“…those who were 60+ days past due on a mortgage loan, lost their mortgage through foreclosure, short sale or other non-satisfactory closure, or had a mortgage loan modification between the Bubble and Burst.”
Other interesting findings in the study:
- During the mortgage bubble in 2006, 78 million consumers, or 43% of credit-active consumers in the U.S., had a mortgage
- More than 8% of these consumers were “impacted”
- 5 Million consumers will again be eligible for a mortgage in the next four years
Here are the number of consumers who will meet mortgage guidelines over the next four years.
If you are a family that experienced the impact of the last housing crisis, now may be the right time to again buy your own home.
Having lived through the 60’s as a young girl, it is so interesting to me to see the return of furnishings from this time period.
The trend was very minimalistic and comfort driven. But it was replaced by a more gaudy and shabby chic style of furnishings.
Most homes that feature Mid-Century modern furniture are fun and fresh with a colorful mixture of furnishings.
As for me, I mix it up. I don’t like one single style to dictate the design of my home. I do like mid-century and I hope the trend lasts for a while. I also wish I had my Mother’s orange silk curved sofa from the 60’s. It was spectacular.
Check out: www.DotandBo.com
for more vintage designs.
With interest rates still below 4%, many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year. If you look at what the four major reporting agencies are predicting for 2016, it may make the decision for you.
The chart below averages the predictions by quarter. With the exception of Fannie Mae, the experts agree that interest rates will increase by three-quarters of a percentage point, costing you more to pay back your loan.
Even a small increase in interest rates can put a dent in your family’s wealth.