Most experts agree that this is a great time to sell your home. Inventories are tight, demand is at a peak, prices are increasing and other variables are favoring the market for sellers. And still, buyers are willing to buy.
So let’s take a look at the reasons Amaya analizes in her report:
1. Mortgage rates are low, which is good for buyers
A 30-year mortgage rate slighlty over 4% is low and most experts agree that they will remain quite affordable for most of 2018. This is good news for buyers and, as a logical consequence, for those considering to sell their homes.
But rates will no remain this low forever. Some think that by the end of 2018 they could reach 5% which might shy away buyers. So the smart move is to sell AND buy now.
Amaya explains to potencial sellers that by listing now not only they will “capture the market of buyers scurrying to close a deal, but if you’re buying after you sell, you’ll also benefit from those lower rates.”
2. The equation Inventory vs. Demand benefits sellers today
Realtor.com puts it in very simple words: “there are more buyers than available homes” right now. And according to the report it does not seem to be changing any sooner as their prediction is that inventory will reach a 4% year-over-year decline by March.
As Amaya points to sellers that “this is your opportunity to be wooed”, she quotes a Southern California realtor as pointing that we are in a “very favourable seller’s market” (…) with “bidding wars and buyers submitting offers with very pro-seller terms.”
3. Home prices are still increasing
The advise is very clear: the sooner the seller lists, the better profit the seller will make. Because yes, prices are rising, but the report explains that “the gains are predicted to be more moderate than in years past.”
According to Realtor.com, 2017 ended with a 5.5% year-over-year increase while their data suggest that 2018 will experience a 3.2% increase year over year.
4. People have more money in their pocket
This is good news for everybody and there are no better words than Amaya’s to explain it: “Record levels of consumer confidence, low unemployment, and stock market surges are setting the stage for high home buyer turnout in 2018. For the first time since the 1960s, the Fed has projected that the unemployment rate will drop below 4%, and the domestic stock market is enjoying a nearly unprecedented rally.”
The National Association fo Realtors’ data confirms that “the housing market is already reflecting this boom” and after more than 10 years home sales reached 5.6% in November of 2017.
With more people feeling confident about their finances, more buyers “could be on the hunt, with more money in their pockets to shell out on a home for sale.”
5. And now Millennials are ready to become FTHB
First-time home buyers might be shyed away by adverse market conditions and struggling personal finances. But with better and more stable jobs (“more money in their pocket” as we quoted above), and still affordable rates “Millennials could account for 43% of home buyers taking out a mortgage in 2018”, according to the report.
That means more home buyers, more demand, which is nothing but good news for those considering to sell.
After a few years of inventory shortage and an increasing demand that keeps pushing prices up, right now seems to be like a seller’s dream. But most experts advice to make your move quickly if you really want to sell your property fast and for the best price. Otherwise you risk that the trend could begin to change.
That could happen, for example, come spring when ––according to the National Association of Realtors––, the supply of homes for sale dramatically increases or, as Realtor.com predicts, inventory levels could begin to rise by the fourth quarter of 2018. Hence: listing your home now instead of waiting for higher competition makes a lot of sense.
With information from Realtor.com.