Reason’s to Sell and/or Buy a Home in 2016
Many of our clients are still ‘on the fence’ to list their home to sell or look for something new. Let’s preface with this; we understand why people wait and why some people don’t sell their home unless certain life changes take place (i.e. marriage, divorce, babies coming, empty nesters, etc). However, here are some very powerful reasons why waiting is not in your best interest:
Interest Rates – They are on the rise and shortly before Christmas 2015 the Federal Reserve raised the Fed Funds Rate up a notch. We know that the Fed Funds Rate would need to come up significantly in order to impact mortgage rates…but this is proposed to be the year for that to happen. Rates are expected to push over 5% by spring and likely even higher through summer.
The Market is Cooling Off – We have been lucky enough to be in a ‘hot’ market but we are beginning to see a downward trend in home value increases in recent months. The natural appreciation of home values we have experienced the last several years is starting to come down from an average of 5-7% increase to 2.5% increase year after year. We are starting to see home values stabilize in our area and around the country. What does this mean? This means home value appreciation is genuinely edging closer and closer to zero as we predicted last year. This means you will not have as compelling position with buyers to meet your asking price or conditions. Couple that with higher interest rates means many home buyers will be out of the market completely next spring, leaving you with fewer buyers available to purchase your home.
Reason 1 & 2 – Just track with us here for a moment. If you had considered selling the home you are in in 2016 and purchasing but decided to wait until kids were out of school or until the busy season. By then interest rates may put you into a lower price range for an upsell! By then what if home values didn’t get enough appreciation to net you a higher value at closing to buy the home you want? We have a few clients who sold in 2015 to buy early this year who are already on the hunt before this happens.
Time and tide wait for no man as the old proverb goes. The changing tide of markets, economic shifts, and an election cycle mean there will be some uncertainty. We hope you can see, as we’ve predicted in the past, that this future is highly likely. Don’t wait, give us a call sooner rather than later!Download Newsletter