Why This Spring Is a Great Time to Sell
With more buyers coming to market this spring, here are the top three reasons you may want to consider selling your house and making a move this season.
1. First-Time Homebuyer Demand Is High
In the latest Housing Trends Report, the National Association of Home Builders (NAHB) measured the share of adults planning to buy a home over the next 12 months. The report indicates the percentage of all buyers who will be first-time buyers looking to purchase a home grew from 53% in Q4 2018 to 63% in Q4 2019.
The results reveal:
"Millennials are the most likely generation to be making plans to purchase a home within a year (19%), followed by Gen Z (13%) and Gen X (12%)…Geographically, 12% of respondents in the South and West are prospective home buyers, slightly ahead of the Northeast (10%) and Midwest (9%).”
With a high demand from first-time homebuyers and a shortage of inventory in the current housing market, especially at the entry level, selling your house this year might be your best move. Why? Because when homebuyers begin their search, they’re not all looking for new construction. Many are eager to find a little charm and character in a place to call home – possibly yours.
In fact, according to the same study, there's a significant demand for existing homes:
“In terms of the type of home these prospective home buyers are interested in, 40% are looking to buy an existing home and 19% a newly-built home. The remaining 41% would buy either a new or existing home.”
With showing activity up among buyers and more new construction coming to market, as a homeowner, you can sell your house now and move up into a new one or downsize into a home that better fits your current and ever-changing needs.
2. Mortgage Interest Rates Are Low
The Primary Mortgage Market Survey from Freddie Mac indicates that interest rates for a 30-year mortgage have fallen since November 2018 when they reached 4.94%. In February of 2020, they hit the lowest level in three years (3.45%). In their latest forecast, Freddie Mac also notes how mortgage rates are expected to remain low, leveling out to an average of 3.8% this year.
If you’re worried about losing a great rate you may already have on your current mortgage, don’t sweat it. Locking in at today’s low rate may allow you to get more for your money on your next home, whether you choose to move up or downsize.
3. Inventory Is Low, Especially at the Entry-Level
Inventory is a hot topic in the market today. According to the National Association of Realtors (NAR), “housing inventories are at the lowest levels for January since 1999.” The good news is, as a homeowner, this shouldn’t scare you at all. New construction is starting to ramp up after years of slowing builder activity, and inventory at the upper-end is in a buyer’s market, making it a great time for you to move into a new home.
A good rule of thumb is to sell something when there’s less of that item for sale and the greatest number of buyers are in the market. That’s exactly what’s happening today.
Bottom Line
Not all buyers are looking for a newly built home, and your house may be high on an eager buyer’s wish list. If you’re ready to take advantage of low mortgage rates and a high demand for your house, let’s get together to start the process for you and your family.
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