Four Reasons To Sell Your Home In 2017

 While it has been a seller's market for the last two years, there are a combination of factors that are making it the best time to sell your home in 2017.  Here are the reasons why.

Reason No. 1: Low Mortgage Rates

It’s all about rates, baby. Low mortgage rates translate to lower monthly costs. Lower costs entice buyers, which is good for sellers. Low mortgage rates translate to a lower monthly cost.  Lower costs, of course, interest buyers which is always good for sellers.  Even though mortgage rates have been creeping up since mid-October, the rates for a 30-year fixed mortgage are still hovering near 30-year lows.  And it is expected for rates to stay right at 4%, they could be up to 4.6% or 4.8% by the end of 2017.Although mortgage rates have been ticking up since mid-October to slightly over 4%, the rates for a 30-year fixed mortgage—the most popular home loan—are still hovering near 30-year lows. For now. 

How does that effect home sellers?  Potential buyers with that knowledge might hurry to close on a home before a possible rate increase. Meaning your home gets sold faster.If you aren't quite ready to list your home, that is OK.  Even if rates to rise by the end of the year, they are still expected to be low enough for buyers to be interested.  Generally, the tipping point is when rates get to 5%, that's when the breaks can really be put on the market.  Once rates get to 5%, that's where home prices start to fall.

Reason No. 2: Smaller Inventory

When inventory is reduced, homes that are available become more valuable which is a good thing for sellers because there is less competition.  Not only are there fewer homes, but the time the homes are on the market should be fairly short.

Reason No. 3: Rising Home Prices

Lower inventory and greater demand mean higher home prices.  The median home price in November of 2016 was $234,900, up 6.8% from the previous year.  Higher prices benefit the specific seller whose property value may have fallen during the recession.  Due to the rising prices, many homeowners can now sell without taking a big loss.

Reason No. 4: Strong Job Market

Unemployment rates are finally decreasing and wages are increasing, allowing for greater consumer confidence.  The increased confidence will spark buyers to look into the market, another good aspect for sellers.  If buyers are confident, they're more likely to seek out larger purchases like homes or cars. 

The Only "Bad" News

If you sold your home today, then you'd likely be looking to purchase another.  Therefore all the factors that worked in your favor as a seller, will work against you as a buyer.  You have the option to rent and hope the prices begin to fall, but what you save on the price of a home you could surrender when mortgages climb to 6%- which is what is predicted for 2019 and 2020.The best tip we can offer: don't wait, because mortgage rates won't.