Editor’s note: Updated June 29, 2017
Spring time is the best time to list your home, right? Maybe not. A number of factors impacting the real estate market right now have created some very compelling reasons to list this summer and fall.
Demand is Off-the-Charts High:
The National Association of Realtors (NAR) continues to report that housing supply is low. In most areas, that means there isn’t currently enough inventory available to satisfy the number of buyers actively searching for a new home. When you put low inventory and high demand together, you get highly motivated buyers – urging some sellers to list now. These sellers want to take advantage of the opportunity to connect with equally motivated buyers, who are now anxiously looking to get settled before a new school year starts.
Interest Rates Are On the Rise:
Interest rates reached historic lows in 2016, but this year, they’ve already gone up – twice! In fact, Freddie Mac data shows that rates are up from 3.54% last year to 3.91% today. As you likely know, even the smallest increase in mortgage interest rates can cost buyers thousands and thousands of dollars over the lifetime of their home loan. As a result…
Buyers Are Motivated:
Buyers understand the impact of rising rates on their buying power, and they are responding accordingly, which means sellers listing now have a dual advantage. Home shoppers are acting fast – not only because inventory is low, but also because they are racing the clock against the third predicted mortgage rate increase this year.
While “timing the market” is often a guessing game, there are multiple reasons why selling now makes a lot of sense. The combination of low inventory, motivated buyers, and increased competition is the perfect storm to generate multiple offers and drive up your final sale price. Keep that in mind as you decide when you list.