The Seller’s Market

A buyer’s market is one where there is more product being manufactured than there are customers who want to buy it. A seller’s market is just the opposite – more buyer’s than product. The last couple years of the real estate market have seen a steady influx of would-be homebuyers, but not enough homes being sold or built to keep up. U.S. News and World Report states that “buyers are chomping at the bit” because of the frustration of not being able to find enough available properties.

So, what does this mean for sellers?

Simply put, the market is in their favor. This means they can ask a premium price for their property and likely be able to get it. The problem for most people, however, is waiting too long to sell. It might be tempting to think the market will only get better, but the fact is it won’t stay a seller’s market forever.

Low Mortgage Rates

If you were locked into high interest rates when you bought your home, selling now could be the financial victory you need. The average APR right now is about 4.10% as opposed to the rate 10 years ago, which was closer to 6%. Selling for you could mean getting out from under a high interest rate and possibly downsizing your home or even purchasing your dream home at a much lower rate.

So Should You Sell?

People sell their homes for many reasons. Perhaps they purchased a much larger house than they needed. Maybe their kids have grown up and moved away and it’s time to downsize. Or maybe they’ve just been waiting for the perfect time to finally build their dream home. Whatever the reason, there won’t always be a great time to sell. The mistake a lot of homeowner’s make is thinking that they are holding onto some equity by staying in their current home. But the fact is that selling at the right time is usually the best decision for increasing your equity and ensuring a more secure financial future.