We understand that everyone one of us has a unique situation as we tread forward on our own race in life. Understanding others needs and requirements are paramount to our success as your trusted realtor at Stovall Team. Together we promise that our vision, core values, and mission statement will align with your own future real estate goals. Regardless of your situation or future plans, let us provide the experienced guidance and expertise in making your real estate plans. Let’s look at the reason you are considering selling in the first place and determine whether it is worth waiting. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire. That is what is truly important. If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
Here are four reasons listing your home for sale this summer makes sense.
- Demand Is Strong The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! More often than not, multiple buyers are competing with each other to buy the same home. Take advantage of the buyer activity currently in the market.
- There Is Less Competition Now Housing inventory has declined year-over-year for the last 35 months and is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon. Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move. The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.
- The Process Will Be Quicker Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Working with a well-qualified and experienced lender is paramount.
- There Will Never Be a Better Time to Move Up If your next move will be into a larger or premium home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly, AND you’ll be able to find a premium home to call your own! Prices are projected to appreciate by 5.2% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
The best time to sell anything is when demand is high, and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home or downsize, now’s the time to list your house for sale and make your dreams come true. Call me today 714.343.9294 and visit stovallteam.com
Sources: Micah Stovall, National Association of Realtors, CoreLogic
Ask the Experts: Will Home Prices Fall as Mortgage Rates Rise?
Q. Will home prices fall as mortgage rates rise?
A. All indicators suggest that home prices will not fall as mortgage rates climb through the end of this year, it’s the law of supply and demand that is driving increasing home prices. The best time to sell anything is when demand is high, and supply is low. As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years Real Estate is a cyclical market– it’s interesting to watch the dynamics of the market. What we see is prices rise, home sales slow down, prices weaken and home sales pick back up. It’s the way a housing market is supposed to behave in a normal environment. But it’s been so long since we’ve seen a normal environment that we forget how it’s supposed to work. Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, you are guessing that home prices will depreciate. Let’s take a look at the data.
Mark Fleming, First American’s Chief Economist: “Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective – they are unlikely to materially impact the housing market… The driving force behind the increase are healthy economic conditions…The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt.” Terry Loebs, Founder of Pulsenomics: “Constrained home supply, persistent demand, very low unemployment, and steady economic growth have given a jolt to the near-term outlook for U.S. home prices. These conditions are overshadowing concerns that mortgage rate increases expected this year might quash the appetite of prospective home buyers.” Laurie Goodman, Codirector of the Housing Finance Policy Center at the Urban Institute: “Higher interest rates are generally positive for home prices, despite decreasing affordability…There were only three periods of prolonged higher rates in 1994, 2000, and the ‘taper tantrum’ in 2013. In each period, home price appreciation was robust.”
Industry reports are also calling for substantial home price appreciation this year. Here are three examples: The Home Price Expectation Survey says that prices will appreciate by 5.8% this year. The Freddie Mac Outlook Report is looking for home prices to appreciate by around 7% in 2018. The CoreLogic HPI Forecast indicates that home prices will increase by 5.2% on a year-over-year basis. As Freddie Mac reported earlier this year in their Insights Report, “Nowhere to go but up? How increasing mortgage rates could affect housing,” “As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
If you are currently in a house that no longer fits your needs and you are looking to step into a different home, now’s the time to list your house for sale and make your dreams come true. Call us today 714.343.9294 and visit stovallteam.
Sources: National Association of Realtors, First American, Housing Finance Development Policy Center at Urban Institute, Pulsenomics, CoreLogic, Freddie Mac, Micah Stovall