Judy Boyle, Realtor®, RE/MAX
School is back in session and the holidays are right around the corner. You might not think that now is the best time to sell your house. With inventory below historic numbers and demand still strong, however, you could be missing out on a great opportunity if you wait too long.
Here are four reasons why you should consider selling your house this fall:
- Demand is strong
The latest Realtors’ Confidence Index from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! They are also heeding Freddie Mac’s warnings that interest rates are expected to increase 1 percent by the first quarter 2017 while CoreLogic predicts home prices will rise over 5.4 percent over the next 12 months. What this means is that a $300,000 home that costs $1,398 per month (principal and interest) could cost $1,659 per month at this time next year. That’s a whopping $261 per month.
- There is less competition now
According to NAR’s latest “Existing Home Sales Report,” the supply of homes for sale nationally is below the six-month supply that constitutes a “balanced” housing market. This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. In Central Massachusetts there is a meager three-months’ supply. We are indeed in a sellers’ market.
While this is very good news for home prices, additional inventory is about to come to market. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years due to a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased an average of 6 percent over the last two years. Many of these homes will be coming to market this fall as homeowners discuss upgrading or moving to warmer climates.
Furthermore, as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017. Last month’s new home sales numbers show that many buyers who had not been able to find their dream home opted to build.
- The process will be quicker
Fannie Mae announced that it anticipates an acceleration in home sales that will surpass 2007’s break-neck pace. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen. Selling now will make the process quicker and simpler.
- 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. As stated above, prices are projected to appreciate by 5.4 percent over the next year and interest rates are expected to jump 1 percent by the first quarter 2017. If you are moving to a higher-priced home, it will wind up costing you much more in raw dollars (both in down payment and mortgage payment) if you wait. Just look at the example above. Using the same predictors, a $500,000 house could cost you almost $500 more per month if you wait just one year.
Bottom line: only you can decide when is a good time to sell and the best time is when you are ready. As a real estate professional who knows the local market, analyzes trends and observes the predictions of the industry experts, my goal is to help you make an informed decision.
Boyle lives in Northborough where she is also a Chapter Leader for Neighbor Brigade, a nonprofit organization that assists local families in times of need. She has been selling real estate in the area for 13 years and has not once compromised her ethics or integrity for a sale. The foundation of her business is to treat others the way that she wants to be treated.
Judy Boyle, Realtor®
RE/MAX Signature Properties
Serving Worcester & Southern Middlesex Counties with honesty and integrity since 2003