Is This Spring a Good Time to Sell?
If you’re looking to take advantage of the red-hot seller’s market, timing is crucial. You'll want to balance getting the most money out of your current home sale, and making the best investment when buying your next home.
This Spring presents an opportunity where you could get the best of both worlds. Here are four reasons why:
1) The Number of Homes on the Market is Still Low
Based on February data, there are .67 months of supply of homes for sale in Central Ohio, which means if no more homes were listed after today, the current homes for sale would last .67 months based on the number of buyers in the market. A balanced market has 4-6 months worth of homes for sale.
This imbalance puts sellers in the driver's seat. Listing your home now makes it the center of attention. When working with the right professional, you should expect it to sell quickly and likely to fetch multiple, strong offers, in a short amount of time.
Selling in the spring comes with some pretty awesome benefits for sellers, including:
2) Your Equity is Growing at a Record Pace
According to a recent report by CoreLogic, the average homeowner has gained $55,300 in equity over the past year.
That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your next home search, rest assured your equity can help fuel your move. It may be just what you need to cover a large portion – if not all – of the down payment on your next home.
3) Mortgage Rates are Increasing
While it’s true mortgage rates have already been climbing this year, current mortgage rates are still below what they’ve been in recent decades. In the 2000s, the average mortgage rate was 6.27%. In the 1990s, the average rate was 8.12%.
For context, the current average 30-year fixed mortgage rate, according to Freddie Mac, is 3.85%. And while recent global uncertainty caused rates to dip slightly in the near term, experts project rates will rise in the months ahead. Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, says:
“For home buyers, we believe that borrowing costs will likely rise with the increase in mortgage rates….”
When that happens, it’ll cost you more to purchase your next home. That’s why it’s important to act now if you’re ready to sell. Work with a trusted advisor to kickstart the process so you can take key steps to make your next purchase before rates climb further.
4) Home Prices are Climbing, Too
Home prices have been skyrocketing in recent years because of the imbalance of supply and demand. And as long as that imbalance continues, so will the rise in home values.
What does that mean for you? If you’re selling so you can move into the home of your dreams or downsize into something that better suits your current needs, you have an opportunity to get ahead of the curve by leveraging your growing equity and purchasing your next home before prices climb higher.
And, once you make your purchase, you can find peace of mind in knowing ongoing home price appreciation is growing the value of your new investment.
I'm Here to Help
Are you ready to list your home and take advantage of the favorable market conditions and the seller's market? Not sure if it's time just yet? Contact me today to ensure you're making the best real estate decisions.