For most of us, the Great Recession feels like it is squarely in the rearview mirror. Housing markets have bounced back with fervor, and confidence is skyrocketing.
1. Rates are still historically low and drawing buyers into the market
By historical standards today’s thirty-year mortgage rates (hovering just above four percent) are still low. Market experts agree mortgage credit will remain relatively cheap for most of the year.
But rates are bound to increase and it has been widely predicted that they will reach five percent before the end of the year. Home buyers know that the longer they wait to buy a house, the higher the price it will be.
In other words, you would be wise to list your home earlier in the year, before more mortgage rate hikes kick in. Not only will you capture the market of home buyers scurrying to close a deal, but if you are buying after you sell, you will also benefit from those lower rates.
2. Inventory remains tight and demand is high
To put it simply, there are more home buyers than available homes. This is particularly true in red-hot markets where land is scarce and it is not cheap to build new homes.
For home sellers, this means that now is your opportunity to be wooed. Home buyer’s choices are limited and they are going to great lengths and making some major concessions to win their dream house.
We are in a very favorable seller’s market and are seeing bidding wars which push up prices. Home buyers are submitting offers with very pro-seller terms, such as forgoing the repair request or waiving the appraisal contingency.
These cash buyers are snapping up homes in an already tight housing market and keeping some first-time buyers at bay. But if you are selling, you will stand a better shot at an all-cash offer.
But the catch is that inventory levels are predicted to begin rising in the fourth quarter, marking the first inventory gain since the year 2015 and setting the stage for more dramatic housing gains to come. So if you are thinking of selling your home, you should start preparing now in order to walk away with a sweet paycheck.
3. Home prices are still rising
Across the country, home prices continue to increase. This translates to more money in your pocket when you sell your home.
The bottom line is that you still stand to make a pretty profit if you sell your home this year, but the earlier you can list it, the better off you will be.
4. People have more money
Record-setting levels of low unemployment, consumer confidence and stock market surges are setting the stage for high home buyer turnout this year. For the first time since the sixties, the Fed has projected that the unemployment rate will drop below four percent and the domestic stock market will have a nearly unprecedented rally.
The housing market is already reflecting the boom. Sales of existing homes soared 5.6 percent and reached their strongest pace in almost eleven years last November. This is the most recent month for which data is available.
Are you looking into selling your home in 2018? Click here to contact Kortney Williams today!