Current market trends show it’s better to list before Spring
There’s a prevailing notion that waiting to sell until Spring is the best course of action for homeowners. Typically, homes sell for higher prices in the summer months. But current extenuating circumstances should have sellers contemplating an earlier listing. Here are 4 reasons to sell now:
Winter buyers are motivated
The National Association of Realtors’ (NAR) most recent existing-homes sales report shows demand continues to far outweigh supply, even in the winter months. NAR also reported homes sell faster from December to March.
Buyers who were frustrated by the lack of inventory during the prime spring and summer seasons of 2016 aren’t just setting their sights on the next selling cycle. They’re looking now. Sellers listing from January to March 2017 will continue to have price advantage over buyers.
The calendar doesn’t matter
NAR’s Generational Trends study revealed the largest generation of buyers (35 percent) are Millennials (aka Generation Y) from 19-34. A large percentage don’t have kids in the school system yet, so they’re not bound by the school calendar.
15 Features that Attract Millennial Buyers
Gen-Xers (in second place at 26 percent of all buyers) looking to move are also free to purchase in January and February. More and more Xers are upsizing to accommodate multi-generational living to accommodate seniors and Generation Y/Z children saving up to buy.
No doubt when the study is released again this March, the numbers will show that Millennials have edged up in percentage, followed yet again by the Gen-Xers
Rates are rising
When the Fed raised short-term interest rates at their December 2016 meeting, they outlined three projected hikes for 2017 beginning as early as March. Confidence in the burgeoning US economy prompted the total forecast of a 0.75 percentage point hike in three quarter-point increments.
Selling in January and February will attract eager buyers hoping to purchase before rates rise again. The clock is also ticking for sellers hoping to purchase another home.
The tide is turning
One significant reason for the lack of inventory and dramatic resulting rise in home prices has been the difficulty of builders to produce affordable yet profitable new homes. However, the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index showed a bit of optimism that new construction will make a strong comeback this year.
“NAHB expects solid 10% growth in single-family construction in 2017, adding to the gains of 2016,” said NAHB Chief Economist Robert Dietz.
What all this means for current homeowners is that prices probably won’t increase the way you think this Spring.
What all this means for current homeowners is that prices probably won’t increase the way you think this Spring. This isn’t a dire crash prediction. It’s simply a natural leveling, and in some cases, drop of home prices to realistically meet the market demand. Even the sky-high markets of New York, Miami, San Fran, Denver and Seattle have shown they’re “poised to come back down to earth” with much lower increases, says Forbes.
Waiting until Spring to sell is no longer good advice for homeowners. Talk to an agent about getting your home listed in January or February, and consider keeping more of your equity by using a flat fee, full service brokerage.
BY SUSHA ROBERTS
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