Why Selling Early in 2018 Might Mean Big Money
In the decade since the Great Recession the housing market has bounced back strong. For some it is hard to remember the fall out that devastated the real estate market all of those years ago. Markets today are higher than ever and, once again, Stafford homes are selling at record prices. Buyers want to get in the game. Which means that it is a great time to be a Stafford seller.
With a shortage of houses on the Stafford market, buyers are exhausted and ready to make concessions to get themselves into a house. But if you plan on selling high and getting the most this year, your window may be closing.
Here is why Stafford home sellers should consider selling early in 2018:
Rates Are Still Historically Low
It might not be the rock bottom rates of a few years ago but if you look back by historical standards, today’s 30-year fixed mortgage is still hovering around 4%. Relatively speaking, this is still really low. It looks like credit will stay relatively inexpensive for a little while. This is good for buyers, so it’s good for sellers!
However, rates appear like they are on the way up and some are predicting they will be at 5% by the end of the year. This means that the longer home buyers wait, the more expensive it will be to buy.
For Stafford sellers, this means that it’s smart to sell now. The earlier you list, the more likely you will be able to sell before interest rates go up.
Also, if you need to buy a new Stafford home as well, it will help you on the buying end of the process as well.
Low Inventory, High Demand
There simply are more Stafford buyers than there are available homes. This is especially true in hot markets where there isn’t a lot of land and building is expensive. The result: the housing shortage might get worse before it gets better.
Buyers realize that they have limited choices and are going to big lengths to win a Stafford house. There are bidding wars taking place alongside favorable seller’s terms like waiving the appraisal contingency or not asking for additional repairs.
Cash investors are in the mix as well and that can be very appealing to Stafford home sellers. Because of the cash buyers ability to act fast when buying properties, it makes it even harder for first-time buyers to get their foot in the door.
But, inventory levels are expected to level out, if not rise in the fourth quarter, the first gain since 2015. In other words, if you are considering selling, now could be the time before the competition floods the market.
Housing Prices Going Up
All across the country, housing prices continue to go up. That means more money in your pocket when you go to sell.
But the gains are starting to level out. Increases will be more moderate towards the end of the year, which means now could be a good time to list.
More Money In Pockets
Consumer confidence is high and unemployment is low which leads to high home buyer turnout. For the first time since the 1960’s it is projected that unemployment will drop below 4%.
The housing market has been showing this boom for a little while. Existing home sales have risen to 5.6% at the end of last year and reached the strongest pace in over 10 years. Incomes are still growing and people are moving into better jobs which reflects that buyers are confident in their financial situations.
Along with the GOP tax legislation, which almost doubles the standard deduction, less people will be itemizing. The result is people are getting a tax cut which should help buyer demand. All of this means more buyers are searching for homes with money in their pockets!
The Millennial Market
As people move into their 30’s they typically look to transition from renting to buying. Millennials, who were inhibited by student debt and high interest rates in the past, are now in the position where they are looking to buy. In light of the above real estate market conditions, 2018 looks like the perfect time for first time millennial buyers to jump in the Stafford market.
By and large, more home buyers flooding the market can result in good things for Stafford sellers, regardless of price points. So if you are considering selling this year, consider doing so earlier rather than later.