By: Virginia Girton
Hooray! Spring is here - the time when buyers awake from hibernation, enter multiple bidding wars, and purchase their perfect homes. This is great news for homeowners interested in selling, right?
Industry experts believe Spring 2016 will prove to be one of the best times in history for home sales. Why? Because several factors have created the perfect conditions for home sellers to gain the most financially:
Interest rates were predicted to skyrocket this year - but after a slight increase, interest rates actually went... back... down. This sent buyers into a frenzy. They expected low rates to last forever, faced reality when interest rates increased, and then received a momentary reprieve when rates decreased again. For the first time in years, buyers understand that, to qualify for the homes they want, they must move swiftly before rates increase again (next time, for a long term period).
The number of homes for sale is extremely low - Buyers' most common concern is that they can't find the right home because so few are listed. In fact, when well-priced homes in good condition are placed on the market, they go under contract quickly. With such little competition, sellers are maximizing their profits and minimizing the time their homes spend on the market.
House values are up - Because of low interest rates, buyers have had more purchasing power for years, and average home prices have steadily climbed year-over-year as a result. Many homeowners who were previously underwater in their mortgages now have the equity to sell their homes outright - for the highest amount we've seen in years.
Home sellers can use their profits to purchase a replacement home with a low payment - Interest rates are extremely low (are you seeing a trend?), and new home construction is booming. Many homeowners are taking advantage of low interest rates to build new - and qualify for a more ideal home with the lowest payment possible (average interest rates are currently in the low-to-mid 3% range).
If you've thought about selling your home to downsize, upsize, or change locations, it's a great time for a pulse check to find out how much your home is worth - before the Spring frenzy gets fully underway. To determine your home value, click here to use my online pricing tool, or call 904-703-6977. I will personally answer your questions and provide a custom, specific value for your home. Happy home selling!