Is Now a Good Time to Sell Your Home?
Deciding whether or not NOW is a good time to sell your home is a tough one. We understand this dilemma. As real estate experts it’s our job to guide our clients in the right direction when it comes to real estate decisions, and we know they’re not easy decisions regardless of what looks like an ideal (or not so ideal) market scenario. Ultimately the choice is yours, of course, but there are some key factors to consider when making this decision.
The KCM crew offers valuable advice on this matter, and we’re elaborating with our own thoughts.
Here are 3 of the top reasons to consider ‘selling your home now’ that we’re in agreeance with.
Housing demand is on the rise for would-be buyers. The amount of foot traffic in the current housing market is notably higher than it has been in recent years. A recent blog showed a noteworthy report with data to support this, conclusively stating that, “The housing market will remain strong throughout the summer and into the fall, making for one of the best years in real estate over the last decade.” Bottom line, buyer demand is high! Prospective buyers are actively looking for their new home, and yours could be the one.
Low Competition…for Sellers!
According to The National Association of Realtors, the housing supply recently slipped to a 5.0-month supply, which falls short of the standard 6-month supply needed to support a normal housing market. So what does this mean for you? Basically that the number of buyers in the market outweigh the number of homes for sale. This is good news for current sellers because the overall housing competition is lower. Intrigued? You should act sooner than later. Homeowners who were previously upside down have (likely) now gained a significant amount of equity on their home, making them eager to cash-in by listing their home on the market soon. We can’t predict when this potential flood of anxious sellers will list their homes, but we’d wager a guess that they’re waiting until the ideal seasons such as spring or summer. Deciding to list your home for sale now could mean that your home will sell for more than in one year from now.
Upgrade Now for Future Savings
So this one is tricky. You’re looking to cash-in on your well deserved home equity, but in the (likely) event that your home does sell, do you turn around and buy that new dream home? Many may decide to sell on the high, buy on the low. This is a common practice. But we’re in San Diego, one of the most desirable locations in the country. If you plan to stay in Southern California, especially anywhere near the coast in an attractive neighborhood, home prices are predicted to steadily increase over the years. According to this article by Keeping Matters Current, home prices are predicted to rise over 19.4% from now until 2019. If we’re looking to the more immediate future, our friends at Freddie Mac predict interest rates to increase by a full percent over this next year. Long in the short of it, if you wait to purchase that dream home it could end up costing you more initially and over time, especially if you consider the above mentioned facts. Your down payment and mortgage payment could both end up being much higher if you decide to wait.
Consider all of the above reasons, weigh out the pro’s and con’s based on your current situation and make the decision that makes the most sense for you. If you’re unsure, contact a trusted real estate agent with the right amount of knowledge and expertise to help you explore your options.
It’s important to us here at The Daniels Group to keep our clients educated and informed on the latest market news to help them make sound real estate decisions.
For more of our perspective on this subject read our recent blog, “Home Price Peaks Increase All Over the Country.”