TOP REASONS TO BUY AND SELL REAL ESTATE NOW!2/5/2017
6 Reasons to Sell Your Home Now!!
You may have decided to sell your home years ago or you have decide to put you home on the market now. For whatever reason, the real estate market has obviously changed with home prices rebounding 30-50%. While every situation is different, and reasons for thinking about selling vary from person to person we believe that now is the ideal time to put your house on the market. Here are 6 reasons to consider selling this time:
1.Demand Is High: There are very serious buyers out there right now. I'm sure you've read market conditions have slowed these past months...even with a slowdown many homes are still selling within 30 days! The reason is inventory and interest rates are still extremely low, enticing many buyers to jump into the housing market. Low inventory, affordable money and strong demand are a home seller's "perfect scenario" to get sold... this will not last for too much longer.
2.Inventory Is On the Rise: Homeowners across the Nation are slowly recovering from negative equity and it's predicted 1.9 Million more homes will soon be hitting the market in the next 12 months. Even the big investors, such as real estate hedge funds and investment trusts worth billions of dollars could also be "cashing-in" to capture profits. Many sellers that couldn't sell years ago are now paying attention this time, getting ready and will not let this opportunity pass them by.
3.Foreign Money Is Disappearing: Money from Asia has been a key component in our local real estate market since 2008. Bidding wars and cash buyers have started to wane?in many cases have disappeared! The run-up in housing appreciation we've recently experienced has forced these buyers to look elsewhere outside of California.
4.New Construction Is Back: The real estate recovery has enabled builders to start building new homes again. Buyers will soon have more attractive options and incentives as new home developments are completed. We all know how nice a NEW home looks!
5.Interest Rates Will Rise: The Federal Reserve finally tapered their bond purchase this month, stopping Quantitative Easement. They suggested the era of historically low mortgage rates will be coming to an end. The Mortgage Bankers Association, the National Association of Realtors®, Fannie Mae and Freddie Mac have also forecasted interest rates to eventually climb. A one point rise in the rate could easily knock many buyers out of the market.
6.Tougher Lending Guidelines: Following the financial crisis of 2008, lenders have been very cautious with the passage of the Dodd-Frank Act. As a result, buyers are having a tougher time qualifying due to stricter guidelines and documentation requirements. Lenders face harsh penalties and are even forced to buy back loans if they are funded outside specific criteria. Lending has always been the heart of real estate transactions. Without loans...real estate sales suffer.
There are reasons why you decided to sell 3 to 4 years ago, and couldn't. Motivations change, plans change, and obviously markets change. Only you know the answer to this question. "Timing" in real estate is just that...Timing! Has the time come for you to move?
7 Reasons to Own A Home
- Tax benefits. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.
- Appreciation. Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 10 years, which included quite a few very bad years for housing, values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.
- Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
- Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
- Predictability. Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.
- Freedom. The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
- Stability. Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.