Conventional wisdom has been to wait until spring to list your home if you are wanting to sell. In the past that has made some sense and is now accepted as a smart strategy for those who want to sell their home. Yet our current real estate market has proven many previously held beliefs. Waiting for a spring market is another belief that is about to fall. Here are reasons why.
1.) Buyers Are Out Early This Year
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 season early.
2.) Interest Rates Are Rising
As mentioned above interest 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. Yet, it also eats into a buyer's purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will have a negative impact on prices.
3.) Many More Foreclosures Are Coming
Banks may be trying to rectify their foreclosure procedures but there are a large amount of discounted properties which have been delayed in coming to market. This "shawdow inventory" will start being released over the next quarter. Foreclosures sell at a discount. When released they will be competing with your house for buyers. If you are looking to sell anytime in 2011, now is the best time!
4.) The Home Of Your Dreams At A Discount.
If the goal is to sell your house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices may continue to soften in some markets yet if you are buying, the pure cost should be more important than price. Cost is dramatically impacted by rising mortgage interest rates.
5.) Inventory Increases In The Spring
Each year there is an increase of inventory which comes to market as we approach the spring. Here are the number of listings in round numbers available for sale last year and you can see the increase. February - 3,500,000, March - 3,625,000 and April - 4,025,000.
All The Best,
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