Historically, spring is the best time to put your house up for sale; that stat could never be more clear in this market. With interest rates still low and many cash-buyers and investors still out there, we have an overload of buyers with very little inventory. Here are 3 great reasons why this is a benefit to the seller, and why now is the time to take advantage of it!
1. Low housing supply: Tight inventory is a main reason the ball is still in the sellers’ court. Having a low inventory tends to increase home prices, shorter market time, and in many cases, can create multiple offer situations.
2. Higher interest rates: While mortgage rates remain low, experts predict more buyers will enter the market in the coming months.
The Federal Reserve’s recent 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 lower mortgage rates.
With interest rates expected to escalate, we will definitely be seeing an influx of buyers hit the market to try and take advantage of the rates before they get too high.
3. Rising rents: Rising rental prices could motivate tenants to make the leap into home ownership. Rent prices have risen 15% nationwide in the past five years in 70 metro areas across the U.S. and income growth hasn’t kept up, according to NAR.
Getting more buyers into the market, especially first-timers, can help sellers feel more comfortable about their prospects.
Higher rental rates can be a double-edge sword, though. With rental prices getting so expensive, it makes it difficult to save money for the down payment on a home. This takes us to another blog post we recently did called: Get off your Butt and BUY A HOUSE! – See what we did there?