So many folks thinking of selling decide to wiat til summer to list their homes, so that they can get through the end of school, graduations, etc. Then, there are also those who are considering selling now but think "summer is just so hectic... let's wait til the end of summer to put our home on the market." While I certainly understand the reasoning behind this thinking, there are 2 main reasons why this is just not the best train of thoguht right now.
FIRST, home prices are going to continue to be compressed and even fall over the next few months. I currently have a home listed in a Clemmons neighborhood I frequent quite a bit for $199,900. In 2007-2008, it would have easily been $239,900. That is quite a cut, and due to the increase in foreclosures hitting the market and the owner occupant saturation we are experiencing, there are just too many homes on the market for the number of buyers. Anytime supply exceeds demand, prices fall.
SECOND, financing is getting tighter and tighter. Not only are we constantly under the threat of interest rates going up, but most federal loans are getting more expensive as well. An FHA loan now has a higher out of pocket cost for a buyer than 6 months ago, so even with a low rate, the amount of home someone will be able to afford for the same monthly payment is less.
The bottom line... don't wait until the end of summer to list. Do it now and capitalize on the folks who are looking to purchase and move in prior to a new school year.
No comments:
Post a Comment