Timing is Everything
As someone who works full time in the Real Estate Industry, I am often asked, “When is the best time to sell my home?”
Each person asking has a different situation, and I think most people are really asking, “When will I get the most money for my home?” While we sell homes all year, typically we see the biggest price increases, and the most demand in the spring and early summer months.
The problem, for most people, is that when they sell a home, they also need to buy one, and while the spring and early summer is a great time to sell, the lack of inventory has made it a hard time to buy. We have had a prolonged period of time with a low inventory of homes on the market due to rapid appreciation, cost of new construction, and demand.
However, If things play out the way they are headed now, we might have a historic convergence of events making this selling season one for the record books. Over the last month, I have noticed several factors at work that are making this spring and summer one of the best times in recent years to both buy and sell a home:
• The inventory of homes for sale is expected to rise this year.
• Interest rates have dropped back to historic levels. Below 4% in some cases.
• The cost of new construction continues to increase.
• Demand locally for homes in all price ranges remains strong.
Last year was a great year for sales, with one of the strongest spring selling seasons on record in our local market. Things did, however, cool down in the last quarter. Buyers were weary from the lack of inventory and rising interest rates, and sellers were waiting until spring to put their homes on the market. That said, properties are continuing to appreciate, while interest rates are dropping. The convergence of all these factors has led to improving affordability for buyers.
The lower interest rates should lift the housing market, nationally, and will also help improve the overall economic outlook, but those rates will eventually rise just as they did last year. On top of that, we are moving into a presidential election cycle next year, which historically means a little slower housing market.
Statistically speaking, it is still a seller’s market, but I do believe this selling season is better for buyers than in recent years. If you are considering selling and buying a home, now may be the perfect time!
By: Allen Green, Realtor John Green & Company Realtors®
