Opportunity Knocks-Don’t Wait to Answer
You know the old saying, Buy Low Sell High? Well, we are as close as is possible to be able to do both right now at the end of 2014. Which means it’s a great time to be a buyer or a seller in our market because there are benefits to everyone in real estate transactions right now. Our circumstances will change, but right now the stars are in alignment.
Benefits to Buyers
There are normal seasonal ups and downs in the market that argue for buying as soon as you can.
Recently we have been dealing with extremely low Inventory levels. That led to multiple offers on most listings and a hectic, difficult buying market. Now in the winter, inventory is up relative to demand, so the craziness of multiple offers and multiple backups has calmed down. At the same time, interest rates are down, still at historically low levels. This cannot continue forever, and a lower rate makes a big impact in how many homes you can afford for the same outlay of cash. Most economists are saying that rates will increase next year in the vicinity of one point. Waiting to buy until rates go up will give you less home for the same monthly mortgage payment.
Home prices will be heading up as the spring selling season brings more sellers into the market and more buyers out shopping. This is good for those who buy now because they begin building equity in a home immediately. There will be more competition for homes in springtime, which can put you at a negotiating disadvantage. If you are planning to buy a home anytime in the next year, you will get more for your money right now based on lower rates, lower home prices, and less competition. Why wait?
Advantages to Sellers
If you are thinking about selling your home, inventory levels in most areas are still in the range favorable to sellers. If you wait to put your home on the market until spring, you will have more competition as other homeowners enter the marketplace. Right now, the low-interest rates that are available are likely to mean that there are more qualified buyers for your home right now than there might be as those interest rates start to rise. Although there are a smaller number of buyers shopping for homes right now due to the seasonal slowdown, the ones who are looking are generally serious, qualified, and on a timeline. Yes, home prices will be going up in the spring, but those same price increases will be offset by competition for buyers. Depending on your reason for selling, it may benefit you to sell now so you can get moving toward whatever is next. We always remind people to consider your monthly carrying costs, mortgage, utilities, insurance, etc. Your home may show to fullest advantage right now while dressed for the holidays, too!
If you are selling and buying in the same market, then you have double the reasons to act now and not delay. If you are moving to a more expensive home, a delay will cost you money because your replacement property will go up at a proportionately higher rate than the one you are selling.
If buying or selling a home is in your near future, there is no better, more potentially profitable time than the present. Call for a professional consultation on your specific situation.