Selling in this market is crazy right? Yes and No. If you’re going to sell, then rent…yes, you’re crazy! (RENT IS ON THE RISE) If you’re going to sell then buy…do it NOW. There are several reasons why now might the best time for you to downsize, upgrade or simply move to a new location. Let me explain. There are several factors at play:
1) RISING INTEREST RATES: Rates are on the rise. This will impact the afford-ability of your house amongst buyers. The more purchasing power buyers have, the more exposure you’ll get.
2) BARGAIN HOMES: As a buyer, you’ll likely never have a better opportunity to snatch up your bargain-priced dream home at historically low rates. Buyers market is an understatement. Will you lose on the sale? Of course, but your “gains” on the buy-side could far out weigh your loses on the sell-side.
3) BUYERS ARE ON THE HUNT: If you know where to look, the buyer traffic is heavy: ONLINE. Tulia, Inc. reports a huge spike in activity on their site. The threat of rising interest rates traditionally gets buyers motivated, and this market is no exception.
4) LESS COMPETITION: With buyers out early, you’ve got a chance to get better exposure now than you will in 60 days, when we see the traditional spike in supply. The buyers are out now, so its a good time to list while you’ve got less competition. For those of you in multi-unit buildings you need to be especially sensitive to this. Avoid direct competition from your neighbors with comparable units as much as possible.
Real estate is extremely LOCAL. Whether its a good time to sell/buy for you depends on these factors and more…included the conditions of your local market. Local doesn’t simply imply your city or even your neighborhood. Your local market could be the four block radius around your property or the building you live in. Its imperative that you consult with a professional who can almost always quickly provide you the information you need to decide if you can in fact take advantage of the factors mentioned above. Don’t wait, be proactive!
For more information on this topic, check out the National Association of Realtors Press Room, or the following article from CNN MONEY titled “Why Buying A Home Now Is A No-Brainer” or a previous blog “Top Reasons To Buy Real Estate Sooner Than Later“.
Kipp Blackburn | Real Estate Consultant | m (312) 730 3320