Hi, ladies and gentlemen, this is Diane Cardano here with the “Hot Off the Press” Real Estate Market Report through Dec 9th 2013.
Over the last couple of months I've been explaining the impact of interest rates and inventory levels on your purchasing power, and I have been bringing you the most current research to explain the latest trends in the housing market.
Today, I am going to take a bit of a break from all of the numbers and instead, address a common misconception about the seasonality of the Housing market.
It’s the end of the year and that means the winter is upon us. Many of you may feel that now is not the time to be either buying or selling your home.
Here are the Top 5 Reasons to Buy a Home Now, and the Top 5 Reasons to Sell a Home Now
Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:
5 Reasons to Buy a Home Now Instead of waiting.
1) Supply Is Shrinking
With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.
2) Price Increases Are on the Horizon
The Home Price Expectation Survey polls released their report recently which projects appreciation in home values over the next five years to be between12.3% and 32.8% .
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
3) Owning a Home Helps Create Family Wealth
Whether you rent or you own the home you are leaving in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s mortgage. The Fed, in a recent study that I reported on last month, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.
4) Interest Rates Are Projected to Rise
The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the end of 2014. That is an increase of almost one full point over current rates. An increase in rates will impact YOUR monthly mortgage payment.
5) Buy Low, Sell High
We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.
5 Reasons to Sell Now Instead of waiting.
Many sellers feel that the spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the fall and winter have their own advantages. Here are five reasons to sell now.
1) Only Serious Buyers Are Out
At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere 'lookers'. The lookers are at the mall or online doing their holiday shopping.
2) There Is Far Less Competition
Housing supply always shrinks dramatically at this time of year. The choices for buyers will be limited. Don't wait until the spring when all the other potential sellers in your market will put their homes up for sale.
3) The Process Will Be Quicker
One of the biggest challenges of the 2013 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.
4) There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 25% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.
5) It's Time to Move On with Your Life
Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.
Don’t Forget! My Home Selling Sharks Seminars for 2014 are starting again in January! We’ll be at the Abington Library at 6:30 on the 16th of January! You can register here! Hope to see you there!
