As 2016 comes to a close, it will be known as the rebound year that put us back to pre-crash levels. Prices today are the same as those in 2007. Inventory is low and people are submitting multiple offers on the same house. Don’t believe me? Ask the 80 visitors who swamped an open house on a stormy and windy day.
Prices are on an upswing and have been for some time. If you ever considered moving up or shaking things up, remember that the National Association of Realtors reported that the median home price went up by 6.2% in 2015, and we are on track to hit similar numbers in 2016.
Here are 3 reasons to make the move now:
Sellers Are Willing To Work With You
Sellers who have had their homes on the market for some time are ready and willing to work with a buyer. You are more likely to get a great deal on unique properties or hard to sell properties during the winter months. Sellers may also agree to repairs, improvements, or a greater share of the closing costs to motivate buyers.
Not to mention that prices sometimes soften during cooler months because of seasonal market shifts. On average, homes sit on the market for more days in winter and early spring. Less volume also means your loan turnaround may be shorter now that loan officers have less on their plate.
Inventory Is Still Low, But Predictions Are High
Despite a hot year, people are still eager to buy just out of lack of options. Homes have appreciated dramatically and we saw an increase in median home prices in 2015. The National Association of Realtors predicted close to a 7% increase for 2016. According to these predictions, it makes sense that buying now would result in a chance for positive equity the following year. People keep repeating that they are waiting for a better time to buy, but in doing so, they are missing the bus.
Interest Rates Have Climbed
For the first time in a long time, interest rates went up. The increase means that your money will lose buying power. Even a half percentage point is enough to push a family’s monthly mortgage beyond their comfort zone. Locking in a low rate (and rates are still much lower than pre-bust levels) is a smart step to take while you can.
On the bright side, interest rates tend to rise when unemployment is low and the market is healthy, meaning that if you wait, you will have some serious competition come summer. Unemployment is now 4.6% and wages are rising, bringing more possible buyers to the marketplace.
Don’t Be Left Out
Everyone is always waiting for the “perfect” time to buy or sell. It’s a sad myth that is repeated by people who don’t know real estate. The National Association of Realtors has feverishly charted the market for many years, and data show that prices have increased, interest rates have climbed, and home prices are on a predicted and steady rise. What more can we say, are you missing the bus?