Have you been keeping up with the headlines in the real estate business? It is widespread knowledge that todays real estate market is perhaps one of the most unique that we have ever experienced. With the industry performing exceptionally well as just one source of evidence, what makes this time so remarkable is just how beneficial it is to both buy and sell at any price point.
For buyers, prices have still not hit their peak and interest rates, although rising, are still well below any levels we have experienced over years past. For sellers, there is a great deal of buyer demand causing bidding wars on properties. As a result, it has thus kept supply levels down and raised home prices all while completing transactions in a decreased amount of days. So while many realize that it is an ideal time to buy, we wanted to take the opportunity to highlight some reasons why it is a particularly opportune time to sell. Below you will gain insight as to why:
Demand Remains High - According to the National Association of Realtors most recent Existing Home Sales Report, there has been a massive 17.2% boost in sales since July of last year. Sales also have remained above their year-over-year numbers across the country for over twenty-five consecutive months due to a growing buyer demand trend.
Supply Finally Increases - Especially in our local markets throughout Massachusetts, there has been much discussion about all of the developments in the form of housing that are or will soon take place. With the aforementioned thriving levels of demand, developers have found it increasingly advantageous to build now that costs are down, to then sell at a significant profit due to the growing pool of buyers. The total housing inventory just rose by 5.6% to roughly 2.28 million homes for sale this summer. In January, there was just a 4.3 month supply of homes for sale, yet the 2.28 million figure represents an improved 5.1 month supply of homes at the current sales pace. The next twelve months should see an additional 1.9 million properties enter positive equity for the United States. To garner the best selling price, it may be beneficial to sell today before the supply increases any further, thus diluting the aggressive demand.
A Boom in Construction - As referenced, the last several years have seen construction costs go down. With the improving economy, not only is the job market seeing far more individuals employed in the construction field, but developers are now breaking ground on monumental projects at an astounding rate. Newer single-family homes, condominiums, and apartments will cause further competition for your property should you place it on the market for sale. Taking advantage of the state of the market with its currently depleted inventory before it rises any further is ideal.
- The Interest Rates are Rising - Although below the interest rates from a few years back, these figures nonetheless have risen from the record low points they were flirting with over the past twelve months. According to Freddie Macs Primary Mortgage Market Survey, the 30-year mortgage is now around 4.57%; up by close to a full point over the beginning of 2013. If a mortgage is necessary for a prospective buyer to purchase a home, then it will likely be a more substantial housing expense one year from now as opposed to today. The Mortgage Bankers Association, Freddie Mac, Fannie Mae, and the National Association of Realtors are unified in their belief that rates will continue to climb at a steady pace going forward.
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