If you’ve toyed with the idea of moving up, downsizing or just craving a change of scenery, you may want to consider selling your home ASAP.
In pockets across the country, the housing market is showing signs of change. Yes, in June we saw record high median home prices nationwide. But there are hints of change coming that you should be aware of if you hope to make maximum profit from the sale of your home.
Read on to find out why.
1. Homebuyers May Start Rethinking Their Decision to Buy
Battle-weary homebuyers are starting to reconsider purchasing a home right now. In some areas of the country, they’ve chosen, “ever so slightly,” to rent a home while awaiting better opportunities for buyers, according to Rick Palacios, director of research for real estate research firm, John Burns.
In fact, the high home prices resulted in a 6% decrease in mortgage applications in mid-July. This represents a decrease of 18% over this time last year.
Selma Hepp, deputy chief economist with data analyst firm Core Logic feels that “There are signs that the hottest days of the market are behind us.” She predicts an increase in housing inventory for the remainder of the year.
Yes, the market is still red-hot for home sellers, but if you’re waiting for it to get even hotter before placing your home on the market, you may be disappointed.
Take advantage of the current pool of homebuyers to get the most money for your home.
2. What Will Interest Rates Do?
Some economists are predicting rising mortgage rates throughout the latter half of 2021, cooling off the housing market.
In late July, “The average rate for 30-year fixed loans increased slightly to 3.11% after two weeks of declines,” according to Diana Olick at cnbc.com.
“So far, the increase in rates has come with ups and downs marked by a gradual rise over time,” Stauffer claims. As this incremental rise continues “as some experts have forecasted,” he adds, the market will cool, even if it’s just slightly.
3. You’ll Have Little Competition from Other Homeowners
According to the National Association of REALTORS®, the inventory of available homes in June increased 1.4%, month to month.
“We may have turned a corner on inventory,” the chief economist for the National Association of Realtors tells Olick. “There is some softening in the demand.”
When the inventory of homes for sale increases, expect home prices to soften. When this will happen is anyone’s guess, so keep an eye on housing market news. Or, give us a call; we’re happy to share with you what we’re seeing in the market.
The bonus for you as a home seller right now is that you’ll have little competition from other sellers. A well-prepared home in a decent area can easily become the belle of the local market and receive multiple offers from qualified homebuyers.
Don’t try to time the market. By the time it turns a corner for sellers, it will be too late; you will have missed the top of the market.
4. Money, Money, Money
Chances are good that you’ll be surprised how much equity you have in your current home.
Last year, American homeowners, on average, gained $33,403 in equity. Let that one sink in a minute. That figure represents a nearly 20% increase from the previous year, according to the number crunchers at Core Logic.
Summer appears to be heralding yet another hot real estate market for sellers. Give us a call to find out how much your home is worth.