What an amazing year 2016 was for home sellers, and 2017 is even better. We had seen a more robust housing market than we've seen since 2006!
Get Very Excited if You Plan to Sell Your Home This Year
The combination of high demand for homes and shrinking inventories produces a seller's market and typically signals rising home prices.
Although it sounds trite - the best time to sell your home is right now, while inventory is low. If you will be selling your home, expect it to go quickly and for top dollar. You will have little competition and the demand in this price range is strong.
While this type of market makes it easy for home sellers to become complacent, if you expect to get top dollar for your home and want it to sell quickly, do the work required to ensure that it's in move-in condition.
Buying a Home This Year?
While it may seem like there isn't a whole lot for homebuyers to get excited about this year, there is one bonus for you: low interest rates. In fact, according to Freddie Mac's Primary Mortgage Market Survey, 30-year mortgage rates continues to be 4% or lower.
Combine the low rates with more relaxed lending guidelines and there is definitely good news for the 2017 homebuyer. Lower mortgage rates mean a lower monthly payment, which means you have more purchasing power, and that additional power can "mean the difference between buying a 3-bedroom home versus a 4-bedroom one; between buying a home with large closets versus small closets; and, between buying an upgraded home versus a dated one," according to Dan Green at The Mortgage Reports.
Yes, there is still a lot of competition from other homebuyers. This makes it more important than ever to have all your ducks in a row before making an offer on a property. Ensure you know exactly how much you can spend and that you've obtained a preapproval letter from your lender. Make your offer stand out from the others by keeping it lean and mean, with the shortest time periods for contingencies as possible. While we're still in a seller's market, come in with your highest and best offer. The market moves too quickly right now to assume the seller will negotiate over price.
Finally, if you've been sitting on the fence waiting for prices to come down, jump off. Home prices are currently rising twice as quickly as incomes, and it doesn't appear the situation will change in the near future.
Why You Should Be Excited About the Housing Market
Feb 25, 2017