Why Home Owners Need to Get Moving

Do potential sellers in your market need convincing? An article in CNNMoney recently highlighted several reasons why this spring would be the perfect time for home owners to get off the fence. After all, many markets across the country are still tilting in sellers’ favor. Here’s why:

  • Less competition: A limited number of homes on the market will help sellers nab top dollar, and may even spur bidding wars and multiple offers. The National Association of REALTORS® reports that inventory levels nationwide were at a 4.6-month supply in February. A balanced market is considered to fall between a five- to seven-month supply.
  • Mortgage rate hikes loom: Mortgage rates are still sitting near historical lows, with the 30-year fixed-rate mortgage hovering under 4 percent. The low rates have helped push more buyers into the marketplace, but they could also be a good thing for sellers who are looking to rebuy. However, rates aren’t expected to remain this low for too much longer, which may prompt a rush this spring. “When interest rates are thought to be escalating, we see a wave up activity with people getting off the sidelines,” says Budge Huskey, president and CEO of Coldwell Banker Real Estate.
  • Soaring rental costs: Also spurring more potential home buyers off the sidelines: Rising rental costs. Rental prices have increased 15 percent nationwide in the past five years in 70 metro areas across the U.S., according to NAR research. “Every time there’s an increase, it triggers the decision processes on whether [renters] should go into the market and buy,” Huskey told CNNMoney. “It allows others to move up the chain in the market.”

index

Comments

  1. Mike Compton says:

    Hey Bob, perfect timing on this subject. I have been thinking about this a lot lately. Let me explain. We will be retiring in three years and moving out of state. With everything on track to work out just as we have planned. The one big question is how soon to put our house on the market. I really don’t want to be in a position of ready to go but stuck with this house. The thought is that we stay in this house as long as possible but hate to pass up an opportunity to sell at the right time. I watch other homes in the area and some sell rather quickly and some never sell. Of course, I think my house will sell because I think it is one of the nicer homes in the area. I also realize that probably most of the other home owners feel the same about theirs. So my question to you is, what would consider the right time to sell under my circumstances? Ideally I would close the week before I retire but life doesn’t always follow my plans like that. I don’t think it is fair to a realtor for me to put it up for sale just to test the waters but it sure would be easier if I knew pretty certain how it will sell.

    I know ultimately it is my decision and a gamble but I would appreciate any thoughts you have on this.

    Thanks
    Mike Compton

    • bobwert says:

      Hey Mike,

      Good questions and concerns you have. Spring time in most areas of the country is traditionally the best time to market and sell a home. When you are absolutely ready to move that’s when you should plan to put the home on the market.

      The home could sell within 30 days or less or it could take much longer. Much of that depends on your market conditions and how aggressively you price your house to sell. For example, if most homes in your area (i.e., similar design, square feet, amenities, etc.) are currently on the market for say $200,000, and you priced your house 5 or 10% below market, it could sell very quickly. If you priced it with similar homes, it could take months.

      A local area Realtor could give you the best idea of market conditions and recommend actions based on your needs and concerns. They will do a Comparable Market Analysis (CMA) to get a idea of going market values and give you recommendations.

      I would be happy to contact a RE/MAX Agent in your area and ask them to give you a call when you are ready.

      Let me know if you have any questions Mike. Shoot me a private email at [email protected] or [email protected]

      I’m always happy to help a fellow veteran and old friend!

      Bob

%d bloggers like this: