Sun Title: Why 2014 is a great year to sell your home | Real Estate
With home prices rising more than 10 percent on average last year and inventory levels at historical lows, this is a great year to sell your home and maximize your value. The current turnaround in housing is being attributed to a number of factors:
- The unemployment rate in the United States has fallen from its recent high of over 10 percent in the fall of 2009 to just over 6 percent the spring of this year.
- Consumer confidence in the U.S. rose to a six-year high this spring as people reported feeling more optimistic about the country’s economic outlook going forward.
- Interest rates on home mortgages remain near historical lows and many loan programs still remain open for borrowers who have limited resources to put down.
- Housing inventory in the U.S. has fallen from an average of 13 months of supply in 2010 to just over four months of supply this spring.
Given the brighter economic climate and lower unemployment, more people are looking to purchase and sell properties. The Great Recession deferred many life plans for people who are now feeling confident enough to make them a reality including the purchase of new homes or second vacation/retirement homes. The low interest rate environment provides buyer’s with great purchasing power. In fact, for every 1 percent of mortgage interest rate reduction, the buyer’s purchasing power goes up more than 10 percent. Buyers who are mindful of this are looking to purchase sooner, given the Federal Reserve’s tapering of its bond purchases in recent months which will likely trigger a higher mortgage interest rate environment in the future.
In addition to the low interest rates, housing inventory has fallen sharply since 2010 creating a high demand for properties in desirable areas. We continue to hear stories from Realtors® who have received multiple offers on properties within hours of it hitting their multiple listing service (MLS) and many properties are selling above the original asking price.
All of these unique factors create a compelling reason to sell your house this year. If you are going to sell, be prepared to have it under contract quickly and close within 30 to 60 days. The timing needs to work for you and your needs and many sellers have been caught off guard by how fast the house sold. Most buyers require full possession of the property upon closing so having a post-sale game plan is critical before you list. If you have the resources, you may consider finding and securing your new home before listing your current home so that the dates of closing and possession line up – moving once is always better than moving twice!
Stay tuned for additional tips and strategies for selling your home.