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There is so much real estate buzz these days but how do you know what you can trust? On the one hand we hear about the market being down and how it’s heading further south. On the other, we’re bombarded with news about how now is a great time for buyers in the market. Well, it is true that buyers have a lot of control these days with interest rates being so low and consequently buyers having that much more buying power. But for sellers the news is not so good and now is definitely not the most ideal time to sell your home.
Still, many people are faced with no choice and have to sell – to relocate to another location or simply to move to another stage in life like retirement or downsizing.
If you are on the fence and don’t know whether now is the time to list your home, consider this: things have been bad but they could easily get worse. Here are four reasons why I believe selling now makes more sense than waiting it out.
Shadow Inventory Will Soon Crowd the Market
Industry experts often refer to supply and demand as a market barometer for real estate and nothing indicates market health more than inventory levels. Anything above 6 or 7 months of inventory is high since that indicates the number of months it would take for the current inventory level to sell and the market to be balanced.
Most normal markets can endure that many months of inventory but as soon as shadow inventory is unloaded on the market things will change significantly. Currently there are about 500,000 bank-owned properties on the market. However, with all the foreclosures pending plus homes that have been issued a Notice of Default, the number of bank owned properties is expected to rise to as many as 4 million properties in the next one to two years. Once that happens, home prices are projected to decline even further.
Interest Rates Are Low But For How Long?
No one can predict how long the current historically low interest rates will remain. Whatever homes are selling these days is due to the immense buying power buyers are tapping into. When you combine low prices of homes with these interest rates lots of buyers are “flocking” to get into their dream homes. Still, there is a reason we are where we are in the first place and an even stronger reason that we’ve been lurking in this precarious position for some time. Until and unless our economy strengthens, despite the added buying power there is still trepidation about getting into major purchases. Before buyers lose the confidence they have these days and before interest rates start shooting back up, it’s a good idea to sell while you still have a fair amount of chance of selling successfully. Once shadow inventory hits the market and these factors come into play, the probability of selling a home quickly and at a favorable price will definitely go down.
The Future of Our Economy Continues to Be An Enigma
No one really knows the impact this year’s Presidential election will have on the economy. Nor can anyone tell how well the national jobs market will improve over the next several years. But one thing is certain – though there is improvement, it’s moving a snail’s pace. To avoid any unforeseen ramifications of our economy declining in the coming months and years I strongly advise sellers contemplating listing their home to go ahead and sell now. Right now, we are seeing sales and before that changes there are better prospects of selling now than there may in the future.
Why Put Your Life On Hold Any Longer?
Imagine the freedom you will feel to be able to do what you have wanted all along. This could mean getting into a better home while paying the same payments you are currently making or it could mean being able to retire. Regardless of your motivation, by holding on to your property until the market springs back to what the home was once worth, you may end up losing out on many things in life. If the market is going to stabilize it will not happen until at least three, five or even seven years down the line. Can you wait that long to move to the next stage in your life?
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If you decide that selling now is right for you, contact your Realtor today to find out how they can help you sell your home with resounding success!
