Four Reasons for Spring Home Sale

Attention Potential Sellers Sitting on the Fence, it could be time to make a move.

“It’s still predominately a seller’s market, but less so than the last year or two,” said Stan Humphries, Zillow’s chief economist. “Some advantages are moving back to buyers; but largely and broadly … it’s still favoring the sellers.”

1. Low housing supply: Inventory in the last month of the year fell by 10.8 percent to 1.65 million existing-homes available for sale; at the current sales pace, this is enough inventory to last only 3.6 months. A year ago, supply levels would have lasted 3.9 months.

2. Fewer cash buyers: All-cash and investment buyers helped buoy home sales in the last couple years. And while the acceleration of home prices has slowed from its recent double-digit growth, experts still expect modest gains this year, but with fewer cash buyers. A more stable and sustainable housing market is predicted as far as price growth is concerned.

3. Higher interest rates: While mortgage rates remain low, experts predict more buyers will enter the market in the coming months. The Federal Reserves continues to hint that higher interest rates are coming sooner rather than later could prompt buyers to start their house hunt in order to take advantage of current lower interest rates before they go up.

4. Rising rents: Rising rental prices could motivate tenants to make the leap into home ownership. Rent Prices have risen nationwide in the past five years in 70 metro areas across the U.S. and income growth hasn’t kept up, according to NAR (the National Association of Realtors).

Give me a call today to get things started or to discuss options in getting your home sold.