There are very few times of the year that people are not buying and selling homes, besides maybe a couple of major holidays. However, the spring and fall are the busiest time of the year. Everyone has different reasons and whether it’s because of work, school or right sizing, but in general many list during these two seasons. The spring, however, is the busiest time of the year. This spring is no exception, if you’re thinking about listing this is a great time to sell your property, and waiting for a better moment might end up costing you.
Right now interest rates are hovering at low levels. This situation won’t last and prospective buyers know it. In fact, the Federal Reserve has hinted that an increase in interest rates is just around the corner. Buyers know that this projected increase will likely mean that acting soon will get them a better overall deal than they might be able to find a year from now. What’s more, so many people are currently renting that rent costs have gone up approximately 15% nationwide. In many cases this means that renting may actually be significantly more expensive than purchasing.
While buyers know this is a good time to shop, fewer sellers are currently listing. There is a lack of inventory in the market place. Right now home inventory is down but demand for homes is high, so it’s very much a seller’s market. In fact, in a normal housing market, demand would mean that the total housing inventory would sell in about six months. Right now, the level of demand relative to availability creates only about a 4.6 month supply, which means there are more buyers looking for homes than there are homes for them to buy. This situation will pit prospective homeowners against each other and might help your home receive competing lucrative offers from multiple buyers. This won’t always be the case, so prospective sellers should take advantage of this ideal situation.
One of the benefits in the low housing inventory besides a lower level of competition is that the entire home-buying process should move more smoothly. With fewer sales happening each day due to fewer homes being available, lenders and banks are facing less of a backlog of mortgage requests and may be more willing to go a little further for the properly qualified client.
This is an exceptional time to list your property.