The housing price hike across the country was 6% on an average last year. However, the price hike is likely to remain between 3% and 5% in 2017. With a low inventory and rise of interest rates at the end of 2016, it’s almost certain that the housing stock will grow bigger this year.
So, if you have been planning to sell your home in 2017, it’s the best time to get cracking. Besides, starting early by listing your home at the beginning of the year will give you some advantages. Here are four of them:
It’s the Best Time to Move Up
If the reason for selling your home is to shift into a larger home, this is the right time to do it. There’s a speculation in the real estate market that the new Trump administration could force buyers to pay bigger down payments. Besides, home prices are also projected to increase this year. So, all the buyers will have to pay more in down payments and mortgage payments if they prefer to wait longer. It will also result in declining the number of eligible buyers.
Obviously, it could all just be a speculation, but you have nothing to lose except for gaining if you act fast.
The Competition is Lower Now
The inventory is still low in many areas where the number of buyers is more than the number of available homes. However, if you wait for a long time, additional inventories will be added to the market.
The increase in real estate value over the last two years has brought back the positive equity. So, many homeowners who could not sell their homes in the last few years are likely to list them in the upcoming summer. Besides, many builders have invested in the market, and the construction of single-family homes is continuously growing.
So, if you have a lovely home in a safe neighborhood, listing it early when the inventory is low will make the buyers lining up for purchase.
There’ll be More Serious Buyers Now
Buyers who hit the streets searching for a home in the dead of winter are serious customers or people who are in some urgency. Folks moving to another state or city, having a new job offer, or getting transferred to a new city will need to get in a home fast. Whatever their need is, these buyers are likely to make a reasonable purchase offer if they find a suitable home.
So, list your home before the spring starts and it may catch the attention of those serious buyers.
Interest Rate could Increase
The interest rates can rise this year. The rates have been low for a very long time. But, they started to tick up at the end of 2016. If the trend continues, it will increase the cost of the overall mortgage payments, causing the real estate market will see a drop in the number of buyers.
So, if the homebuyers think that the rates are going to rise more, they will hurry up rather than loitering more and paying higher mortgage payments.
Most sellers regret about not acting fast and listing the home when the time is favorable. So, do the renovations if your home needs any and get your finances in order when the market is right.