My friends over at Keeping Current Matters posted this blog this morning. I have added my thoughts after each point.
|3 Reasons to Sell Your Home this SpringPosted: 08 Apr 2014 04:00 AM PDT
Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.
1. Demand is about to skyrocket
Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.
These buyers are ready, willing and able to buy…and are in the market right now!
Here in Newton/Brookline the Spring market begins in late January with the peak time being right after President’s weekend. We are most definitely seeing an uptick in homes coming on but not anywhere near levels of a normal market. We have a 104 homes for sale in comparison to 200 in a typical Spring market. (Read my Blog post from yesterday for more details) Once we move into May the frenzy usually subsides. Memorial Day weekend is the last hurrah for house hunters. That may change this year so I will keep you updated if I continue to see a fair amount of new inventory. I am putting on a great house in CH (below a million dollars) the week of April 20th.
2. There Is Less Competition – For Now
Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.
The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.
The biggest problem sellers have is finding a new place to go. Thankfully negative equity did not wreak havoc here. There were definitely a few instances but it was not a debilitating factor in our market. My biggest concerns are the crazy prices people are paying for SOME homes priced under 1 million dollars. $600.00 a square foot for an average neighborhood is not a smart decision. I am hoping that an increase in inventory will halt the crazy escalation of home prices that are completely out of whack with reality. It is also interesting to note that homes priced between 1.5 and 2.5 continue to be lagging. We have not seen the usual lower priced homes pushing the mid-priced homes. That segment of the market is very slow. Again we are having bidding wars for a property priced at 1.2 and ultimately selling for 1.5, that’s probably really worth 1.3. Take a look at some of the homes priced between 1.5 and 1.8 and see if you can’t negotiate a bargain. Or stretch to buy a house and not an illusion.
3. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 4% this year and 8% by the end of 2015. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.
Moving up to a new home will be less expensive this spring than later this year or next year.
Yup! All true. I say this so often I am starting to annoy myself — This is a supply and demand business. Sellers if you plan to sell don’t wait until everyone else does. I guarantee you will find a new home. For the 1.5 – 2.5 buyer you may have to consider a serious price reduction or doing some work. Remove wallpaper, wall to wall carpeting etc.
PLEASE JOIN ME ON TUESDAY, APRIL 22ND AT A SEMINAR FEATURING LAURIE NORDMAN FROM NEXT STAGE ASSOCIATE. LAURIE WILL HELP YOU HELP YOURSELF OR YOUR PARENTS PREPARE FOR A MOVE. DOWNSIZE, UPSIZE OR RIGHTSIZE. CHECK OUT HER WEBSITE WWW.NEXTSTAGEASSOCIATES.COM