Conventional wisdom has always been to wait until the ‘Spring Buying Season’ to place your home on the market, hoping for a fresh start when buyers begin to look. That has seemed to make sense in the past and is widely accepted as a good strategy for anyone wanting to sell their home at the best possible price.
What we have come to realize, is that the “past” wisdom of Real Estate 101 doesn’t necessarily fit today’s real estate market Here are some good reasons why?
1. Interest Rates Are On the Rise
If you have not had been on vacation in BoraBora with no internet service, you must be aware that interest rates have spiked up rather dramatically over the last ninety days. From unheard of rates below 4%, interest rates nationwide are now over 5%. Usually an increase in rates has a positive effect on the market because it forces buyers off the fence. Unfortunately, it also cuts into a buyer’s purchasing power. As rates increase, the amount of a mortgage for which a buyer can qualify also decreases. Ultimately, this can have a negative impact on prices.
2. Your Dream Home Will Never Be Cheaper
If your goal is to sell your current home and take advantage of the tremendous selection of properties currently available to buy the property you have always wanted, DO IT NOW! Although prices may continue to soften in many markets, if you are buying, COST should be more important than PRICE. What does that mean? You not only need to consider what you can pay for a home (PRICE), you need to look at what the payment will be (COST). Cost can be dramatically impacted by rising mortgage interest rates. Do the math!!
3. Buyers Are Out Early
There is good evidence that buyers are coming out earlier this year. The belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.
According to Pete Flint, the CEO of Trulia: “We’re seeing a national resurgence of buyer and seller activity on Trulia.com. In January alone, we experienced an unprecedented level of site traffic including 11 million unique visitors – which is more than 70 percent year-over-year growth. We’ve are now experiencing 100,000 property views per minute.”
The National Association of Realtors just reported that the number of house sales increased 12.9% over last month.
4. Inventory Increases Every Spring
Every year there is an increase of inventory which comes to market as we approach the spring. For example, last year the number of listings available for sale increased each month:
• February – 3,531,000
• March – 3,626,000
• April – 4,029,000
There is no reason to think that a similar increase will happen in 2011 as there is a pent-up selling demand created by the weak market of the last few years. Getting you home on the market ahead of this increase will certainly increase the exposure of your home to prospective buyers.
5. We Are in the Eye of the Foreclosure Storm
While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. The expectation is that this inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.
CNN Money quoted the leadership Of RealtyTrac on this issue: “We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac. “Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.” “We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.
These are five strong reasons to sell now instead of waiting until later in the year. Sit down with a one of the professionals at Meadows Mountain Realty today and decide the best options for you and your family.
Meadows Mountain Realty knows the market and can help you with all of your real estate needs.
For more information about Highlands and Cashiers North Carolina, and for access to the Highlands/Cashiers NC MLS, contact Meadows Mountain Realty today, 828-526-1717 or email us today at info@bhhsmmr.com.
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