5 Reasons to Hop Onto the Market in 2017
#1 Mortgage Rates are Still Low
Financing is a major part of buying and selling your home in any market. Fact is, buying a home is one of the greatest investments you'll make in your lifetime. When mortgage rates are low, your monthly costs are lower. Lower costs attract more buyers, and this is why now is the time to sell. Although mortgage rates ever so slightly increased toward the end of 2016, they remain at a 30-year low.
#2 Inventory is Shrinking
Think back to economics 101 - whether it was just yesterday or decades ago - you still probably recall the significance of a classical economic theory known as 'supply and demand.' Basically, in short, this theory states that an increase in demand of a product or service directly impacts the price of said product or service.
Now for some numbers; in 2007, just before the housing crash, existing home inventory peaked at 4.04 million homes for sale, according to National Association of Realtors (NAR) data. Fast-forward to November 2016: There were only 1.85 million homes for sale, 9.3% lower than the year before - and a whopping 54% lower than the 2007 peak.
To put it very simply, sellers this year have very little competition. Less competition means lower risk factor and increased opportunity for financial gain.
#3 Home Prices are Rising
Lower supply and greater demand have pushed up home prices. The median existing-home price average in November 2016 was $234,900, up to 6.8% from November 2015, when it was $220,000, according to NAR. And that's no fluke. That was the 57th consecutive month of of year-over-year gains.
Higher prices also particularly benefit the seller whose property value may have plunged during the recession, sometimes to less than he owed. Thanks to rising prices, many homeowners whose property was underwater can now sell without suffering a big loss.
"2017 will be [is] a rare 'balanced' market for buyers, because even though mortgage rates are edging up, many sellers have recovered enough equity to be able to afford to sell" says Colby Sambrotto, President and CEO of USRealty.com.
#4 Job Markets are Strengthening
As unemployment decreases and wages (finally!) increase, consumer confidence and credit scores continue to climb. Increased buyer confidence has a positive impact on today's market and, you guessed it, this includes the real estate market. And yes, this is amazing news for sellers. Today's real estate market is full of determined buyers, so this is why strengthening job markets is another reason to sell NOW.
#5 Strong Buyer Demand
Like we just said, today's real estate market is full of determined buyers with great credit who are ready to move in. It's no secret. Buyers are back, and in a big way from the real estate market collapse nearly 10 years ago. Many buyers are realizing that this is a historic time to buy real estate. With interest rates at historic lows, money is on sale. This is creating a compelling argument that purchasing a home is much better than renting.
Especially with how fast rental prices are increasing.
If you're looking to buy a home there is a good chance you will be competing against many others in 2017. Between interest rates, improving job markets, rental price increases, and the general confidence in the economy, there is a strong buyer demand right now. Strong buyer demand = a great reason to list your home for sale in 2017!