Thinking of selling??? Today I will explain why NOW is one of the best times ever to sell your home for top dollar.
Sellers who list their home now can have a significant financial advantage selling in the Fall vs other times of the year. I'll explain how shortly. First, let me give you a bit of background on the current conditions in the greater Sacramento Valley housing market:
1. Mortgage rates have hit a 7-year high.
Several weeks ago the 30-year fixed mortgage rate broke through the 5%-mark, the highest level since May 2011. This is part of an ongoing trend in mortgage rates, in the last year interest rates have risen over 1%. It now cost a buyer 15% to obtain a mortgage than it did a year ago.
In spite of the rate increase, mortgage applications spiked in September. This is a signal that buyers expect rates to go up even more in the near future—something that's very well possible given current conditions.
2. Affordability is decreasing, and demand might soon follow.
For the past several years, home prices have increased at twice the speed of inflation. For a while, this didn't have too much of an effect on the market, because there was tremendous pent-up demand. However, home prices have continued to rise and the mortgage rate hikes might finally be getting to buyers. Affordability is declining—an estimate from early summer put current home affordability levels at a 10-year low. It appears that this too may be causing demand to soften.
3. Some sellers are now reducing prices this may be a result of improper pricing recommendations by an agent.
Not surprisingly, the combination of sustained high prices, increasing mortgage rates, and a drop in demand is finally starting to have an impact on the real estate market. While there are still no major signs of a real estate slowdown yet, there are some indicators that we must pay attention to.
What does this all mean for you?????
In short, if you've been thinking of selling your home, then the time to act is now. In spite of the easing of demand, there are still many hungry buyers in the market and prices remain near all-time highs. This means homes that are properly marketed are selling quickly and for top dollar.
However, all of the reasons I listed earlier mean this opportunity to get top dollar might not last very long. Demand might decrease even more, and then more homeowners might decide to enter the market, driving down prices and really causing the market to shift ushering in a buyer's market. That's why it can make a lot of sense to SELL NOW while inventory levels are low, as we move closer to the holidays inventory levels will drop even further and less competition means which can create a financial advantage to you as a seller with higher prices.
If you are considering selling, what to know the value of your home call or email me, I look forward to being of service.
Remember for Unforgettable Results, Ask For Mela