Conventional wisdom would suggest that listing your home during the cooler, winter months is not the most optimal timing. However, conventional wisdom doesn't account for special circumstances. The real estate market continues to be a seller's market coming up on three years of record low inventory of homes for sale versus actively looking buyers. This window might be starting to close, making now the best time to list your home and get the best sales price possible before the market begins to shift. Let's look at the top 5 reasons not to wait to list your home:
1. The inventory of homes for sale is still lower than the demand posed by the number of new buyers looking to purchase. New constructions are finally starting to catch up some of that demand and will continue to do so throughout 2018. Your best bet for the best sales price is during the time of highest demand and most fierce competition - which is right now.
2. Home prices are still climbing. Buyers frequently find themselves in bidding wars and in competition with cash buyers, both of which are situations that continue to push home values and sales prices higher.
3. Interest rates are still low - for now. While interest rates have risen slightly as the real estate market has rebounded and are not quite at the rock bottom we have experienced in recent years, they are still historically low, overall. However, interest rates are expected to rise throughout the year, possibly as much as an entire percentage point. Higher interest rates make homeownership more expensive and buyers often compensate by choosing a less expensive home to offset the cost. The best time to get top dollar on the sale of your home is before interest rates go up.
4. Overall improvements in the U.S. economy mean more people qualify to buy. The more buyers there are, the greater the demand for the homes that are available, and the better price you can get on the sale of your home. Positive trends such as low unemployment, the continued upward climb of the stock market and record high levels of consumer confidence all indicate the economic recovery is robust and healthy.
5. Millennials are finally entering the fray. Super cautious millennials are finally starting to poke their toes into homeownership and deciding the time is right to jump on in. After years of holding back, millennials finally looking to buy are bolstering the supply of potential buyers and keeping demand high.
Now might be the best time to make the most on the sale of your home. If you have been planning to list your home and were waiting for the right time, talk to your Century 21 Broadhurst agent to make sure you don't miss out on the max sales price possible this year.