Real Estate Market: 5 Reasons You Should Sell Your House TODAY!

Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up. Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

1. Entering this time of year, the buyers are more serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.

2. If you are moving up, you can save thousands.

The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now: It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time. A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another. Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.

3. Interest rates just fell again – to 4.19%.

Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us: Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.
  • January – 3,277,000
  • February – 3,531,000
  • March – 3,626,000
  • April – 4,029,000
You won’t have to worry about this increasing competition if you sell now.

5. You have less ‘discounted’ inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property. Bottom Line If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it! The KCM Crew

Real Estate Market: Real Estate Crystal Ball…What Would It Show?

  If we only had a real estate crystal ball. “Where are we and where are we going?”  Are questions that we get asked a lot lately.  Well, we don’t have a real estate crystal ball but here are some answers based on trends that are now becoming apparent. First, market activity has improved dramatically over this time last year.  It has been over 12 months since the stock market hit bottom.  Investor confidence is returning.  Many Americans are feeling more confident about their wealth – so long as they have stability in their job.  Allen Tate Company’s sales volume has increased 25% YTD vs. same period last year and each month is showing stronger gains. The 2009 tax credit certainly helped the market with first-time buyer tax credits.  The extension of those credits and the addition of the repeat buyer credit are helping us right now.  There remains uncertainty of what will happen as those credits expire April 30.  If you plan to take advantage, NOW is the time!  Please contact the Lee Ann Miller Team to get started and get under contract by April 30.  There will be NO better time than now to buy a home. Prices remain well below the peak of several years ago and I expect any appreciation to be slow in coming.  While many industry leaders are declaring “increases in average sale prices”, look carefully at this.  The higher-end market is beginning to see signs of activity now.  Those sales are having a positive influence on the average sale price but it is my opinion there is very little true appreciation in the market.  Nonetheless, long-term opportunities are plentiful right now. Interest rates remain at or near 5%.  Two influences will impact rates in the near-term.  The Fed is preparing to cease purchasing “Mortgage Backed Securities”, so it is likely that rates will rise slightly as the open market investors will demand higher returns.  Opposing that influence is the position by the Fed that they intend to keep rates at historical lows for the foreseeable future.  Bottom line – I expect rates to remain between 5% – 6% in 2010. So, this is very good news for you.  The buying opportunity right now is as good as it will get.  The market activity has improved dramatically.  The higher-end market activity is thawing.  Please call us if you are interested in a summary of your personal needs.  We would be delighted to assist you or your friends. Sincerely, The Lee Ann Miller Team     .