5 Reasons to Sell Before Spring
Many sellers think spring is the best time to list their home for sale as buyer demand traditionally increases during this time of year. However, the next 6 weeks before spring arrives has it’s advantages. Regardless of what Punxsutawney Phil says!
5 Reasons to List Your Home Now
1. Demand is Strong
Foot traffic refers to the number of people who are actually looking at homes now. The latest foot traffic numbers from the National Association of Realtors (NAR) show the number of active buyers in December reached the highest mark since February 2016. Take advantage of the strong buyer activity currently in the market.
2. There Is Less Competition Now
Housing inventory just dropped to a 3.6-month supply – this is well under the 6-month supply needed for a “normal” housing market. Thus, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. 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 some were unable to sell over the past few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased and many of these homes will be coming on the market soon.
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 for this other inventory to come 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. Lenders are requiring more paperwork before approving a mortgage. Getting your house closed before the spring delays begin will help for a smoother transaction.
4. It’s a Great 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 4.7% over the next 12 months. If you are moving to a higher priced home, it will cost you more in raw dollars (both in down payment and mortgage payment) if you wait. Interest rates are projected to rise by half a percentage point by the end of 2017.
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?
Real Estate Bottom Line
If you have plans to sell your home, let’s discuss your situation. You may want to act sooner rather than later.