We hate to keep picking on your old Uncle Harry, who “knows a little something about real estate,” but if he — or anyone — is telling you that this is not the time to be in the market, they’re wrong.
Buyers Are Serious at This Time of Year
Traditionally, homeowners think about spring as a great time to list their homes, when more buyer traffic may be out there actively searching. In the winter, however, the buyers who are seeking a home – whether for relocation or otherwise – are serious ones. They’re ready to make offers and they’re eager to move, often quickly. Your house may be exactly what they’re looking for, so listing when other potential sellers are holding off may be your best opportunity to shine.
There Will Never Be a Better Time to Move Up
If your next move will be into the premium or luxury market, now is the time to move up. There is currently ample inventory for sale at higher price ranges. This means if you’re planning on selling a starter or trade-up home and moving into your dream home, you’ll be able to do that now. Demand for your entry-level home is high, and inventory in the luxury or premium market is too.
According to CoreLogic, prices are projected to appreciate by 5.6% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and in your mortgage) if you wait.
Interest Rates Are Historically Low
As the graphic below shows, mortgage interest rates are the lowest they’ve been in fifty years!
So, at the moment, both buyers and sellers are in strong positions.
We’re seeing that this is a great time to be in the market based on our business activity. We’ve been recognized as “Brokers of the Month” for the Sandwich office of Today Real Estate based on four November closings. For December, we’re looking at three more. In January, we’re already projecting at least two closings.
While a few of these have been cooking for a while, many are of a more recent vintage during a time Uncle Harry will tell you is not the best to market or purchase a home.
So, while this is definitely the season, a word of caution.
Sellers, overpricing your home because it’s a “seller’s market,” only means that it will take longer to sell, costing you money in terms of additional mortgage payments, taxes, etc.. Even though available inventory is less than a year ago, there are still a number of available options that are priced to sell.
Buyers, have a clear understanding of what you’re looking for in a home; how much you’re willing to spend, and what that may mean in terms of the condition of the house. For example, while the price of a home that needs some TLC may seem like a deal, if the work is beyond what you’re capable of, or if you’re depending on friends to do the bulk of what’s needed, your cost savings may quickly disappear.
If you’re on the fence about buying or selling or haven’t even climbed on yet, we’d be happy to answer your questions and review your options. Just contact us at 508-568-8191 or firstname.lastname@example.org. Thanks.
Enjoy your week…
Mari and Hank