Selling Your Home In Spring
For those who are looking to list their homes with a listing agent, the perfect timing is coming up. Balancing out the time to sell with having the best possible next investment for your home is crucial. Timing is all that matters in this situation, and luckily for sellers, that timing is coming up. Spring is single-handedly the best time to list your home, as there is strong buyer demand and prices tend to tick up in these months. There are very little homes on the market as well, and come spring time, those who list will have the most eyes possible on their house. The spring time is the most opportune time to list, and doing so leads you to the best results. Here is why selling your home in spring leads to the best possibility for tremendous results.
Inventory Remains Historically Low
Today, there is a historically low number of homes for sale on any given day. Typically, Monday and Thursday offer some sort of new inventory. However, these homes are usually quickly absorbed into the market because of the demand. This is a beneficial aspect of the current real estate market for sellers. There is a significant amount of buyers still looking for that perfect home, or just any home they can get an offer accepted on. There are plenty of buyers out there, meaning your home will have the best possibility of getting the most eyes possible on it. Listing a home now, and in the spring in normal markets, usually has the best results. This is because the supply and demand aspect of real estate favors those who list their homes early while demand is ticking up. That is one reason why selling your home in spring is beneficial.
Homeowners have never been in a better position to gain equity and build their net worth. According to Homeowner Equity Insight report from CoreLogic, people who are considered homeowners are racking in the dough, on paper. In fact, homeowners are sitting on record amounts of home equity, and this does not look to change. This is because of the recent and historical home price appreciation we have seen over the past few years. The CoreLogic report shows that homeowners have gained close to $55,000 in equity over a single year.
With gaining that much equity, you are left with a few options. For those waiting off on selling their home because they are worried about finding another, do not worry. Because of your tremendous equity gains that you saw in a little over 12 months, you will have more in your pocket to help you look, or to have your down payment. Most homeowners who sell are using this drastic increase in equity as a way to pay down on their next home, making their offer more attractive and lending more favorable.
Mortgage Rates And Selling Your Home In Spring
What we have seen to start the year in the mortgage rate market was sort of unpredictable. In fact, we have seen mortgage rates tick up close to one whole percentage point in just three short months. This is because of the implications of the Federal Reserve and their rate hikes to stop inflation. While the mortgage rates have yet to truly impact demand, that time is coming soon. However, for those that think mortgage rates have gone to high, remember something called recency bias. Just because mortgage rates are no longer 3% does not make them high. In fact, at 4.29%, mortgage rates are still below the decade average.
With recent global unrest, we have seen mortgage rates bounce around between upper 3s and lower 4s. However, while rates may be volatile now, many experts still predict that they will continue a steady increase in the coming months. According to Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, borrowing costs are likely to increase following the increase in mortgage rates. When borrowing costs rise, it costs more to purchase your next home.
Home Prices And Selling Your Home In Spring
As we have all heard by now, home prices have been skyrocketing in the pre-and-post-pandemic markets. This is largely due to the principle of supply and demand, and looks to remain problematic for the foreseeable future. According to Danielle Hale, Chief Economist at realtor.com, builders are close to 6 million homes behind where they need to be. This has been going on for years now, and will be hard to fix with increasing costs to borrow, as well as supply chain disruptions.
For sellers, rising home prices mean one thing: more money for you in your pocket. Because of your increased equity, you are able to get more back when selling your home. Getting more back will help you either have the down payment for your dream home, or allow you to downsize and keep your money. Selling your home in spring allows you to have the best opportunity for profits, as well as have your home in front of as many people as possible.