Reasons to Sell Your Home Before Spring
Many sellers feel spring is the best time to list their home as buyer demand traditionally increases at this time of year. However, the next six weeks prior to spring arriving also has its advantages.
Here are 5 Reasons to Sell Now –
1. Buyer Demand is Strong
Foot traffic refers to the number of people actually physically looking at homes right now. The latest foot traffic numbers show 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 this strong buyer traffic.
2. Inventory is Low
Housing supply just dropped to 3.9 months, which is well under the 6 months’ supply needed for a normal housing market. For Denver and surrounding areas, this means there are not enough homes for sale to satisfy the number of buyers in our market. This is good news for home prices. However, additional inventory is about to hit the market as we get closer to spring.
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. 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).
Additionally, people who couldn’t qualify to buy a home last year and had to rent are now coming back in the market to purchase.
The choices buyers have will increase in the spring. Don’t wait to sell – there is additional inventory of homes waiting to be listed.
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/lenders are requiring more paperwork before approving a mortgage. Since there is less overall business done in the winter, underwriting workloads tend to be lighter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring rush will help for a smoother transaction.
4. Now is 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 5.3% over the next 12 months according to CoreLogic. If you are moving to a higher priced home, it will cost more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock your 30-year housing expense with a low rate. Rates are projected to rise by three-quarters of a percent by the end of 2016.
5. 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.
Real Estate Bottom Line
If you would like to list your home for sale before the spring rush hits, reach out to me…I’m happy to help!