5 Reasons To Do It NOW!
The conventional wisdom when selling a
home has always been to wait until the ‘Spring Buying Season’. Over the
years, that has seemed to make sense and is now accepted as a good strategy for
those who want to sell their house and receive the best possible price. This
real estate market has shattered many previously held beliefs. The wisdom of
waiting for a spring market is another belief that is about to fall. Here are
five reasons why?
1.) Interest Rates Are On the Rise
rates have spiked up rather dramatically over the last ninety days and are now
over 5%. Initially, an increase in rates has a positive effect on the market as
it forces buyers off the fence. However, it also eats into a buyer’s purchasing
power. As rates increase, the mortgage amount a buyer qualifies for decreases.
This will eventually have a negative impact on prices.
2.) Your Dream Home Will Never Be Cheaper
your family goal is to sell your current house and take advantage of the
fabulous selection of properties currently available to buy the home of your
dreams, DO IT NOW! Prices will continue to soften in most markets. However, if
you are buying, COST should be more important than PRICE. Cost can be
dramatically impacted by rising mortgage interest rates. Do the math and decide
if now is the time.
3.) Buyers Are Out Early
There is mounting evidence
that buyers are coming out earlier this year. A belief that now is a good time
to buy coupled with the increase in interest rates has started the buying
Pete Flint, 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.”
Association of Realtors just
reported that the number of house sales increased 12.9% over last
4.) Inventory Increases Every Spring
year there is an increase of inventory which comes to market as we approach the
spring. Here is the number of listings available for sale in 2010.
believe there will be an increase in these numbers in 2011 as there is a
pent-up selling demand created by the weak market of the last few years. You
won’t have to worry about this increasing competition if you sell now.
5.) We Are in the Eye of the Foreclosure Storm
banks are trying to rectify their foreclosure procedures, there is a large
supply of discounted properties which has been delayed coming to market. 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 ofimproper foreclosure
“We expect a spike in the
first quarter,” said Rick Sharga, a RealtyTrac spokesman.