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:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.