If you are waiting until spring to sell your home, here are five reasons you may want to consider listing now.
1. Supply is Low: Inventory of homes on the market is very low in the Sacramento area. In Sacramento, Placer and El Dorado counties we have gone from 4,984 homes available in December 2011 to only 2,282. This drop and the trend continues to indicate inventory will shrink more. A year ago, homes were selling on average for 93 percent of the asking price. Last month, sales were averaging 98 percent of the asking price and many were going over the asking price. Listing now and selling before the spring selling season may improve your chance of selling quickly.
2. Demand is High: Homes are selling much faster than any time since 2006. In the past year alone the number of days on the market for Sacramento area homes has gone from 91 to 48 days, a drop of 47.3 percent. A year ago, homes were selling on average for 93 percent of the asking price. Last month, sales were averaging 98 percent of the asking price and many were going over the asking price. Investors and returning homebuyers are completing with first time buyers creating a high demand for homes. Selling now when the inventory is low and demand is growing may get you a better price.
3. Interest Rates are Rising: The low interest rates we have been enjoying for the past few years will not stay low forever. The Mortgage Broker Association and others are projecting interest rates will increase by a full percentage point by year end. This means if you need to use a mortgage to buy your next home, costs will be higher the longer you wait.
4. New Construction is Increasing: Over the past few years sellers have not had to compete with new construction but this is changing fast. For the same reasons as above builders are seeing demand higher than supply so are starting to return to building new homes. At Sun City in Roseville, you have to enter a lottery to get the chance to buy a new home. Listing now rather than waiting may reduce the competition.
5. Sales Process is Faster: The businesses supporting the housing market have not grown as fast as the marketplace. Appraisers, inspectors, lenders, and others are stretched thin and as the market heats up this spring they will be hard pressed to meet timelines for service. We have seen costs increase by late appraisals and lenders with back room processes which take much longer than expected to approve and fund loans. Selling before the rush may make the sale process faster and easier.
What Realtor does not say “now is the best time to sell,” but the above are five good reasons why you should not wait.
If you or someone you know is considering selling a home, even one underwater, and have questions, please let me know. I can be reached at the MagnumOne Realty office in Roseville (916-899-6571) or by sending an email to me at firstname.lastname@example.org.