for sale on the market today
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.
More Information: Keeping Current
Matters