If you've been hedging on whether or not to sell your home, here's the advice you've been waiting for: Sell Your Home! The positive energy of increasing real estate sales, continuing record-low interest rates, and a lack of product are making it a "seller's market" again. What does this mean for you as a seller? A seller's market usually translates to multiple offers, getting more than your asking price, and a relatively quick close of escrow.
So start your spring seller's landscaping, amp up your curb appeal, and get ready to sell your home to the highest bidder.
The Energy of Increased Real Estate Sales. If you remember your elementary science classes, you may recall Newton's First Law of Physics: an object at rest stays and rest and, conversely, an object in motion tends to stay in motion. In real estate, you can translate the word "energy" for "motion." Real estate buyer traffic is up 40% from last year, and it's continuing to trend in an upward motion. In addition to increased sales rates, the houses-for-sale are holding steady. This means there are more buyers than houses - thus it's a "sellers market" There is almost a tangible energy around sales trends.
Record Low Interest Rates. The interest rates for those with good credit continue to remain low in an effort to improve the economy. In fact, according to Freddie Mac's chart on 30-Year Fixed Rate Mortgages, interest rates these last few years have been significantly lower than they have in the past 30 years. Unfortunately, things can't last this way forever. You can begin to see very slight increases from 2012 to 2013, and we wouldn't be surprised if these increases continue, even if at a slower pace. This can motivate buyers to buy their new home before rates begin their inevitable upward climb.
Supply and Demand. As mentioned above, a seller's market occurs when there are more buyers than sellers. When there is more demand than supply in the housing market, buyers are competing for the same desirable goods. If you make sure your goods are desirable, there is a really good chance you will become the subject of a bidding war. In the best case scenario, a desirable house in a desirable location will end up selling for considerably more than its asking price. Another benefit of a seller's market is that buyers are less confident about a "contingency sale" (where their home has to sell before they can buy your home). In a seller's market, buyers are more apt to use a bridge loan to ensure they get the house they want while they concurrently deal with their own housing issue. Wouldn't it be nice if you were a seller reaping the benefits of a seller's market?
Ready to sell your home? If so, find a reputable real estate agent, get your house ready to show, and watch the steady stream of interested buyers line up at the door. The "sold" banner will be up before you know it.