Traditionally, spring is a great time to sell your home, with the market being especially hot in spring over the last two years in Orange County.
Here are three reasons to sell your home this spring.
1. There is less competition—for now.
If no new homes were put on the market going forward, it would take 4.6 months to sell all available inventory nationally, according to the most recent data available, which was obtained by CNN Money from the National Association of Realtors. Traditionally, a market is considered “balanced” if it’s at a 5-month supply, Danielle Hale, director of housing statistics at the NAR, told CNN.
What this all means is the market is still tight, and if you list your home for sale now, you’ll have less competition from other sellers, and the chances of you receiving multiple offers and driving potential buyers into a bidding war is that much greater.
Of course, as more and more sellers begin to realize that it’s a sellers market, the market shifts and buyers start to gain control, so if you’re on the fence about selling, you may want to jump in to the market while it’s still in your favor.
2. Interest rates are expected to rise
The Federal Reserve has hinted that it may raise interest rates in June, and traditionally whenever potential buyers receive signs that interest rates may rise, they start to hit the housing market in earnest. They’re hoping to get in while rates are still low.
Of course, when interest rates rise, the amount that the average buyer can afford in monthly payments does not traditionally rise with it, meaning that home prices tend to fall over time after interest rates go up, negatively affecting your equity.
With interest rates’ downward pressure on equity possibly in the future, homeowners may want to consider selling now to cash out with as much equity as possible.
3. Rents are continuing to rise
When rents go up, renters start to look to the housing market as a way to stabilize their budget.
Rents have risen 15% over the past five years in 70 metro areas, according to CNN Money, and income hasn’t kept up with the pace.
Rents are also expected to rise 5% in 2015 versus 2014 in Orange County, according to a recent article in the Orange County Register.
What this all means for sellers is that demand for your home is about to skyrocket, so if you’re on the fence about selling, now may be the perfect time to do so.
As always if you’d like to talk about this or any other real estate issues, please feel free to give me a call at (714) 348-4000.