Is 2017 the year you finally sell your home? If you’ve been contemplating making a move but have been hesitant to do so up until this point, 2017 just might be the right time to bite the bullet. Of course, such a move should only be made after making the appropriate plans and preparing yourself to sell.
Here are 5 reasons why you should consider listing your home in the new year.
1. Inventory is Low
The Golden State is in the middle of a housing shortage – particularly in Southern California – and when inventory is low, it’s typically an opportune time to list your home for sale. Homes have been selling faster in 2016 than they were last year, with more and more of them being sold for over the asking price. One of the biggest factors in this scenario is the ongoing inventory issue across the state.
An increase in demand with a shortage in supply provides the perfect equation for would-be sellers. Because of the steep competition among buyers in a low-inventory environment, they’ll be pouncing on your listing the moment it hits the market, especially if it’s located in a desirable area.
2. The Interest Rate Might Be Rising
Mortgage rates have been hovering near historical lows for a few years now, which has helped make homeownership more affordable. However, rates can’t stay down forever, and they’ve already inched a notch up over the past couple of months. The Federal Reserve also marginally increased the key interest rate in the middle of December, which usually means modestly higher rates on mortgages are to come.
Regardless of whether or not you believe the rates will rise in 2017, many prospective buyers are definitely concerned that they will, which will make it more expensive to carry a mortgage. As such, they might not be willing to wait as long to make a purchase in anticipation of a potential increase in mortgage rates.
Sellers benefit when more buyers can afford to pay a higher purchase price against a low interest rate. In addition, if you sell soon and buy your new home at the same time – or at least shortly after – you’ll be able to take advantage of this same low-interest rate environment.
3. Price Points Are High in Hot Markets
Some of the hottest markets in the country are right here in California. In particular, San Francisco, San Jose, San Diego, and Los Angeles take the top spots. Areas like these are in high demand, which drives the listing price of homes way up. If your property is in an established neighborhood with a long track record of high demand, it makes a huge difference come sale time. You’ll not only be able to sell your home quickly in a hot market, you’ll also get fair market value for it.
4. Carrying Costs Increase the Longer You Wait
Each passing day that you stay in your home will cost you more to carry it. If you’ve been waiting it out to see if you can boost your listing price by a percent or two, you might not even break even if your holding costs are more than that amount.
You could be slapped with a hike in property taxes, or your utility bills may end up costing more. There’s always a chance that something will break down in your home that may require fixing, not to mention the cost just to maintain it. Consider all the costs associated with carrying your home compared to an increase in selling price if you wait a few more months or longer. The wait just might not be worth it.
5. The Market Starts Early in the Year in Warm Climates
Many sellers in colder climates decide to wait until the spring season approaches before listing in order to take advantage of a better exterior appearance after the snow melts and the flowers bloom. This is not a concern in California, as the climate is conducive to beautiful landscaping year round.
As such, there’s no reason to wait until the spring or beyond to list your home for sale. In fact, it’s not uncommon for real estate brokerages to experience a surge in visitors to open houses and scheduled showings immediately after the Christmas holidays. At the very least, buyers are browsing online to keep their tabs on potential listings that might pop up.
The Bottom Line
There are plenty of reasons why 2017 might be the year you finally list your home. But before you do, make sure you arm yourself with a team of professionals in the real estate industry to make sure the process is a seamless one that garners you the most money by the time the transaction is complete.