7 Reasons to Sell Now
The real estate market is ALWAYS changing. At the Howe Realty Group, we take pride in studying the local market conditions and staying ahead of the the current trends, offering our clients an unfair advantage when deciding when to strategically enter the market. We have created this list of the Top 7 Reasons to Sell Your Home now!
Top 7 Reasons – Why Is Now A Great Time To Sell Your Home in the Phoenix Metro Area?
1. Seller’s Market Advantage
A Seller’s market is defined as one in which there are fewer than 6 months of inventory on the market. Sellers have more pricing power since there is a higher demand for available properties. This number has changed and it is quickly adjusting and the sellers may only have a distinct short-term advantage.
2. Significant Price Appreciation
We have tracked and witnessed significant price appreciation year over year for the last 24-36 months coming out of the 2008 financial crisis, which has positively impacted the equity position of homeowners, the core factor that often determines wealth creation for investors and families.
3. Historically Low Mortgage Rates
Even with recent volatility in the interest rates, we are currently experiencing some of the lowest mortgage rates in history. The expansion of the credit markets has brought back various loan products for consumers and investors ranging from mortgages with low down payments to interest-only options, creating a unique opportunity for buyers.
4. Higher Negotiated Sales Price
Sales Price to List Price ratio is a key factor in a dynamic real estate market. Sellers have strategic control over price as they are making approximately 97.8% of the original asking price. This is up from 96% in March 2014.
5. Changing Inventory Landscape
Inventory levels remain low from a traditional market perspective but since Q1 2015 there has been a decreasing trend in active inventory. Overall inventory still feels “tight”, but this is changing quickly and sellers have a unique short-term advantage while the market self-calibrates. Resale homes are also threatened with the rising presence of new home builders. Our local market is one of the most active for new construction starts throughout the entire valley.
6. Improving Distressed Market
The large majority of distressed properties returned to positive equity in 2012/13 from the previous years, primarily driven by price appreciation. While the improved equity values help homeowners dramatically, it also allows homeowners to now sell without the negative equity burden. This continuing trend could bring more unanticipated inventory to the market altering the demand/supply equation. Therefore, sellers should consider getting ahead of the curve, conceptually, to retain their market advantage.
7. Renters Becoming Buyers
With wage growth, stock market improvement, continued low interest rates, and an upward climb in rents, more renters are seeking the American dream of homeownership adding to the pool of qualified buyers. This is especially true in Arizona where the mortgage interest deduction is a tremendous benefit based on the average sales price. Additionally, lenders are introducing new loan products with lower down payments and interest-only options. This will only increase demand for available housing.