Getting the Jump on the Spring Selling Season
Punxsutawney Phil, Seer of Seers, Sage of Sages, Star of the Big Screen with Bill Murray, and Weather Prophet Extraordinaire, said we’re in for a longer winter. Surprisingly, that could be great news if you are thinking about making a move this spring. Why, you ask; how can freezing cold weather be a good thing for any market? Here are four reasons why putting your house up for sale now could be your best bet:
1. Low Inventory Means Less Competition
Inventory is low, so there is less competition. Many “Baby Boomers” have been waiting for home prices to increase to 2006 levels before selling their homes and moving forward with pre-retirement or retirement plans. This year, many have gained some equity and made the decision to move forward. Inventory, and therefore competition, will be increasing significantly as the spring market rolls into full gear. Beat the competition and consider listing your property for sale now. High demand plus low supply equals higher prices.
2. Increasing Interest Rate Forecasts Motivate Buyers
There are buyers who have been looking for some time for “the perfect home”. In December, the Federal Reserve increased interest rates, with more to come. With interest rates on the rise, many of these buyers are motivated to get off the fence and make a decision. Maybe they will decide to buy your house.
3. Higher Interest Rates Lower Affordability
The Fed’s policy makers indicated they anticipate three rate hikes to come in 2017, and many experts expect a larger effect on mortgage rates. This is not only a problem for buyers, but also for sellers. As rates increase, the cost of a home to the consumer will increase without providing additional funds for its seller. This automatically makes your home less affordable and potentially harder to sell later.
4. Increasing Rents Spur New Buyers Into the Market
Rental prices are increasing. Many renters are entering the buyer’s market, looking for more stability in living expenses, and wanting to take advantage of lower interest rates before they’re gone. According to the National Association of Realtors, “Millennials” now comprise 35% of all home buyers, a share that has been increasing for the last four years, and is expected to lead the buying market in a big way in 2017.
So, if you are considering a move, consider acting today, in the pre-spring market. You will be glad you did.
About the Author: For more than 14 years, Renee Clark, a Realtor Broker with @Properties, has distinguished herself as a consistent top producer in the north and northwest suburbs of Chicago. Contact her at 847.612.0027 and learn more at reneeclarkhomes.com.