Many homeowners are waiting until the spring ‘buying season’ to list their homes for sale. Here are five reasons why that might not make sense this year per the KCM Blog:
Homes are selling at a pace not seen since 2007. The Existing Home Sales Report by the National Association of Realtors® (NAR) indicated sales in 2012 increased 9.2% over 2011. There are buyers out there right now who want to purchase a home!
Nationally, the monthly supply of houses for sale is at its lowest point (4.4 months) since May of 2005. Selling now when demand is high and supply is low may bring you your best price. (Usually, inventory of listings increases in the spring.)
New Construction Is Coming Back
Over the last several years, most homeowners selling their home did not have to compete with a nearby new construction home or condominium. As the new-construction market is recovering, more and more builders are building homes once again. These new homes will become competition to the resale real estate market.
Interest Rates Projected to Rise
The Mortgage Bankers’ Association has projected mortgage interest rates will inch up approximately one full point in 2013. Whether moving up or down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
Timelines Will Be Shorter
The dramatic increase in transactions caused many challenges to the process of buying or selling a home in 2012. People waited for inspections and hoped the mortgage institution didn’t ask for more documentation before committing to the mortgage.
There are fewer transactions in during winter. This means that timetables for the home-buying process should be smoother for the next three months.