Many homeowners are waiting until the Spring ‘buying season’ to list their homes for sale. Here are five reasons why that might not make sense this year:
1.) Demand Is High
Homes are selling at a pace not seen since 2007. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that annual sales in 2012 increased 9.2% over 2011. There are buyers out there right now and they are serious about purchasing.
2.) Supply Is Low
The monthly supply of houses for sale is at its lowest point (4.4 months) since May of 2005. The current month’s supply is down 21.6% from the same time last year. Historically, inventory increases dramatically in the spring. Selling now when demand is high and supply is low may garner you your best price.
3.) New Construction Is Coming Back
Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative to many purchasers.
4.) Interest Rates Are Projected to Inch Up
The Mortgage Bankers’ Association has projected mortgage interest rates will inch up approximately one full point in 2013. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
5.) Timelines Will Be Shorter
The dramatic increase in transactions caused many challenges to the process of buying or selling a home in 2012. We waited for inspections, dealt with last minute appraisals and prayed that the bank didn’t ask for ‘just one more piece of paper’ before issuing a commitment on the mortgage. There are fewer transactions this time of year. That means that timetables on each component of the home buying process will be friendlier for those involved in transactions over the next 90 days.
These are five good reasons why you should consider listing your house today instead of waiting.
This is a national article, but it is universally true, especially here in Albuquerque. I'd like to touch on each of the points listed as they pertain to Albuquerque real estate.
1) In the Albuquerque, Rio Rancho and surrounding areas areas, we are in the 18th consecutive month were year over year home sales are higher than the same month in the previous year.
2) Inventory is at it's lowest point since 2007. We are now below 3600 homes on the market, which means the Albuquerque real estate market is beginning to stabilize. We are noticing homes selling FASTER, and for the first time in a long time, we are experiencing MULTIPLE OFFERS and offers OVER LIST PRICE. Need I say more?
3) New home permits are also at a high point compared to the last few years. Several of the builders have faded out of the market, but the ones that remain are strong and are building attractive and reasonably priced homes. As you drive around the Albuquerque area, notice how many homes are being built. You will be surprised to see how many luxury homes and million-dollar-homes are under construction.
4) Interest rates are notorious for bouncing around. One day they may be up and the next day they are down. According to Roger Gettler, a Senior Loan Officer with Legacy Mortgage, interest rates inched up today.
5) I cannot completely agree with the statement that the Closing-Period is shorter this time of year as opposed to others. There are fewer sales this time of year than, say, during the summer, though there are still high volumes of refinances and homes sales occurring throughout the Albuquerque area, even this time of year. One indesputable truth is that closings scheduled for the end of the month are far more likely to experience delays than those scheduled earlier in the month.
If you would like to discuss these items in further detail or would like to know the approximate value of your home, please call Q Realty today.
