Friday, February 28, 2014

5 Reasons to Sell a Home Now Instead of Waiting

Do you want to see this on your home?

  Based on prices, mortgage rates and soaring rents, there may have never been a better time in
real estate history to sell a home than right now. Here are five reasons homeowners should consider selling before the spring market arrives:

Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first.  Don’t miss the opportunity to get your home on the market to provide that ‘once-in-a-lifetime’ buy.

Price Increases Are on the Horizon

Prices are projected to appreciate by over 25% from now to 2018.  First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if it is a move-up buyer, it will wind-up costing them more in net dollars as the home they will buy will appreciate at approximately the same rate as the house they are in now.

Owning a Home Helps Create Family Wealth

Whether renting or owning the home they are living in, they are paying a mortgage. Either they are paying their mortgage or the landlord’s. The Fed, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter. With interest rates low and home prices rising wealth accumulation is most likely when home prices are still low.

Interest Rates Are Projected to Rise

The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the this time next year. That is an increase of almost one full point over current rates. Higher rates tend to mean less available buyers.

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. However, experts predict that home prices will not rise this year and much as they did last year. It’s time to sell.

When will you make the decision to sell, when it’s too late?

Wednesday, February 26, 2014

Should Homeowners Wait to Sell?
According to Jed Kolko, chief economist with Trulia (TRLA) in his latest housing predictions for 2014, "As prices rise, buying homes will become less attractive to investors as well as first-time home buyers, but repeat buyers will be able to offset the higher price of the home they buy with the higher price from the home they sell.”
Kolko believes next year will also see housing affordability worsen, the home buying frenzy die down and a slowdown in rising home prices.

Kolko said, "There will likely by a decline in the homeownership rate next year since 18-34 year olds will be moving into rentals. The homeownership rate will decline or at least be stagnant, even though what is beneath that should be a healthy moment of young people moving out of their parents' houses into places they rent themselves."  He did, however, advise that job and income growth, the effect of new mortgage rules and the constant changes in Washington, D.C could prove to be unsettling in the marketplace.

“Throughout 2013, the housing recovery has progressed on most fronts but remains unbalanced. Of the five key indicators that Trulia’s Housing Barometer now follows, three are on track towards a full recovery,” Kolko said.  Two that are lagging behind are new construction starts and the employment rate, which are only 36% and 23% of normal rates.

Non-distressed sales, price levels and foreclosure rates are on track toward a full recovery with those indicators 79%, 71% and 59% of normal which is good news for pre-owned home sellers.

What does this all mean for homeowners thinking about selling, but are uncertain when the best time is to put their home on the market? Prices are leveling off, and likely there will be less buyers competing for your home so as one saying goes, there’s no time like the present.