The Scott Daniel Group
Your Family Realtor
Five Reasons to Sell Now
Many sellers are still hesitant about putting their house up for sale.
Where are prices headed? Where are interest rates headed? Can buyers
qualify for a mortgage? These are all valid questions. However, there are
several reasons to sell your home sooner rather than later. Here are five
of those reasons.
1. The Most Serious Buyers Are Out NowMost people realize that the housing
market is hottest from April through June. The most serious buyers are well
aware of this and, for that reason, come out in early spring in order to beat the
heavy competition. These buyers are ready, willing and able to buy…and are in
the market right now!
2. There Is Less Competition NowHousing supply always grows from the spring through the early summer. The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.
3. The Process Will Be QuickerOne of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen. Selling now will make the process quicker and simpler.
4. There Will Never Be a Better Time to Move-UpIf you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Rates are projected to be well over 5% by this time next year.
5. It’s Time to Move On with Your LifeLook at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
Housing Outlook Still Very Positive
The past week has not been pretty for the housing market as data showed a sharp deceleration, calling the recovery into question.
Among the lowlights:
• Housing Starts fell 16% in January, the biggest monthly drop since February 2011
• Existing Home Sales slid 5.1% last month to the slowest pace since July 2012
• Mortgage Applications hit their lowest level since September 2011
In addition, permits fell more than expected and The NAHB home builder index fell 10 points. Beyond the weather, the housing market is battling the “ongoing headwinds of tight credit, limited inventory, higher prices and higher mortgage interest rates,” according to the National Association of Realtors -- an organization not typically known for being cautious on housing. (Update: The December S&P Case-Shiller 20-City Index, released after the accompanying video was taped, rose a higher-than-expected 13.4% vs. a year ago. But the index rose just 0.8% vs. the prior month, the third-straight month of deceleration.)
Housing bull and PIMCO deputy CIO Mark Kiesel is undaunted by the recent weakness, arguing the trends are "still very positive for housing" for 2014 -- and beyond.
Specifically, Kiesel cites "good news" in the labor market -- approximately 2.3 million private sector jobs per year -- and "very good news" on consumer balance sheets; specifically, he notes household net worth has rise $14 trillion in the past two years while home equity has risen by $3.5 trillion. Furthermore, he notes only 13% of U.S. homeowners with a mortgage are under water, down from 22% last year and 33% at the market's nadir.
But the "best indicator" for housing is inventories, which Kiesel says are currently at a 13-year low and a 30-year low as a percentage of the working age population. "There is simply not enough supply where you and I want to buy and because of that we should continue to see a supportive market going forward," he says. "As long as interest rates stay roughly where they are, you should see a continued recovery in this [housing] market."
Kiesel, who is forecasting 5% price appreciation in 2014, is bullish on homebuilders -- notably Toll Brothers, DR Horton and KB Homes -- and even more bullish on building materials companies such as USG, Masco and Weyerhauser. "Not only are you going to see more homes being built," he says, but the aforementioned stats on consumers' rising net worth and increased home equity means homeowners are going to have more incentive -- and the means -- to remodel.