Why is now the best time to sell or buy a home?
In the lasted release of the The National Association of Realtors (NAR) Quarterly Metro Home Price Report revealed that severely lacking inventory across the country drained sales growth and kept home prices rising at a steady clip in nearly all metro areas. Home prices rose 5.3% over the last quarter across all metros.
Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report:
“Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had to outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year, steadfast price growth and weakening affordability conditions.”
Trulia reported that “in Q4 2017, U.S. home inventory decreased by 10.5%. That is the biggest drop we’ve seen since Q2 2013.”
What this means to sellers
Rising prices are a homeowner’s best friend. As reported by the Washington Post in a recent article post:
“The rise in median sales prices has made current homeowners much more willing to sell their home, and that willingness is one of the main drivers behind the inventory that does make it on to the market. While it hasn’t been enough to meet demand, it has made the situation much better, compared with even three or four years ago.”
What this means to buyers
With interest rates going up, buyers spending power lessens because there is now more interest in the monthly payment. Buyers approval amount will decrease due to rising interest rates and they are predicted to rise all of 2018. This is why there is a sense of urgency to buy now.
Bottom Line
If you are a seller on the fence about selling, now is the perfect time to sell due to low inventory and less competition. If you are a buyer, it is best to make that purchase sooner than later as interest rates are predicted to rise throughout 2018.
