- Supply & Demand: It’s economics 101. Low supply and high demand means higher price points. Right now, we have a historically low inventory rate and high buyer demand. As inventory shifts – and with new home construction on the rise adding to supply – acting sooner rather than later could net you more when you sell your home. “2017 will be a rare ‘balanced market’ for buyers because even though mortgage rates are edging up, many sellers have recovered enough equity to be able to afford to sell,” says Colby Sambrotto, president, and CEO of USRealty.com.
- Interest Rates: Mortgage rates have been ticking up since the fourth quarter of last year, to just over 4%, and the rates for a 30-year mortgage are still hovering near 30-year lows. “We expect them to hold at this (4%) level for a while and continue to adjust up,” says Danielle Hale, managing director of housing research for the National Association of REALTORS. When the interest rates go higher, demand will be lower, and home prices are predicted to level or fall.
- Buyer Urgency: The predicted tipping point for buyers to put the brakes on the robust demand is an interest rate of 5% or better, which we could see by year’s end. Today’s buyers are well informed and eager to lock in lower rates while they can.
- Stronger Job Market: As unemployment continues to decrease, consumer confidence grows, and that trend converts to more homebuyers as well. According to NAR chief economist Jonathan Smoke, “If people are confident, they’re more likely to buy big-ticket items like houses and cars. And then they spend more money on other things. It reinforces the economy, creating a virtuous cycle.”
It’s the perfect time to sell your home and an opportune time, given the current interest rates, to purchase your next home. Don’t wait! If you’re ready to sell and want to get top dollar for your home, call or text Jim Bigelow today (918)640-4657.
The Bigelow Group / Coldwell Banker