Selling Your Home - Magazine - Page 4
You can leverage that equity, plus current
low mortgage rates, to power your move
now. But these near-historic low rates won’t
last forever.
3. When Supply Is Low, Your
House Is in the Spotlight
One of the most significant challenges for
motivated buyers is the current inventory of
homes for sale. Though it’s improving, it
remains at near-record lows. The chart below
shows just how low today’s inventory is.
Experts forecast mortgage rates will start to
rise in the months ahead. In their forecast,
Freddie Mac says:
“While we forecast rates to increase
gradually later in the year, we don't
expect to see a rapid increase. At the
end of the year, we forecast 30-year
rates will be around 3.4%, rising to
3.8% by the fourth quarter of 2022.”
If you’re looking to take advantage of buyer
demand and get the most attention for your
house, selling now before more listings come
to the market might be your best option.
4. If You’re Thinking of Moving Up,
Now May Be the Time
When rates rise, even modestly, it’ll impact
your monthly payment and by extension your
purchasing power.
If your current home no longer meets your
needs, it may be the perfect time to make a
move. Today, homeowners are gaining a
significant amount of wealth through
growing equity.
Months
Inventory of
Homes for
Sale
Today’s low
inventory puts us
in one of the
strongest sellers’
markets ever
12.5
11.5
10.5
9.5
8.5
7.5
6.5
5.5
4.5
3.5 1999
2.5
1.5
2010
2008
Buyers’
Market
2007
(> 7 Months)
2006
Neutral Market (6-7 Months)
Today
Sellers’
Market
(< 6 Months)
NAR
Bottom Line
Don't delay. The combination of housing supply challenges, low mortgage rates, and
extremely motivated buyers gives sellers this season a unique opportunity. If you’re
thinking about making a move, let's chat about why it makes sense to list your house
sooner rather than later.
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