7 Reasons Why It’s a Good Time to Sell Your Home

For-sale-Sold1) Shifting Unprecedented Demand
A Seller’s market is defined as one in which there are fewer than 6 months of inventory on the market. Sellers have more pricing power since there is a higher demand for available properties. This number has changed from 4.5 mo in June to 5.3 mo in September. It is quickly adjusting, and the sellers may only have a distinct short-term advantage.trevordiy.wordpress.com

2) Significant Price Appreciation
There has been a significant price appreciation year over year for the last 24-36 months coming out of the financial crisis, which has positively impacted the equity position of homeowners, the core factor that often determines wealth creation for investors and families.

3) Low Mortgage Rates
Even with recent volatility in the interest rates, Mortgage rates now are among the lowest mortgage change the financing vehicles that are available.

4) Higher Negotiated Sales Price
Sellers have strategic control over price as they are making approximately 95% of the original asking price. This is up from 90% in August 2011.

5) Changing Inventory Landscape
Inventory levels remain low from a traditional market perspective but since the Q1 2013 there has been 31% increase in active inventory. Overall inventory still feels “tight”, but this is changing quickly, and sellers have a unique short-term advantage.

6) Improving Distressed Market
Over 2.5 million distressed properties returned to positive equity in Q2 2013, primarily driven by price appreciation.  In other words, owners no longer owe more than their property is worth. We predict that this will begin to contribute to the active inventory pool and may start to put downward pressure on the rate of price appreciation.

7) Cues from Renters
Significant price appreciation often creates a short-term dislocation between rents (YoY +9.6%) and home prices (YoY+36%). Many buyers are switching to renting as the cost of renting relative to the price of the property makes renting seem more attractive, which should be a big clue to homeowners regarding the relatively higher value of their homes, and they should seriously consider why now may be a great time to sell.

 

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Category: For SELLERS

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