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SALT LAKE CITY — It’s spring, the beginning of what is typically the most popular real estate home buying and selling season. You might be one of those people who are tempted to put their home on the market, but you’ve been cautiously waiting for the uncertain housing market conditions to change before acting.
It’s no wonder you’ve been hesitant. During the past five years, an oversupply of short-sale and foreclosure properties may have frustrated you because you were hoping to at least break even on the sale of your home.
Well, take heart; you may want to start investigating the market again because conditions are changing. Here are three reasons to sell your home now.
1. Home prices are stabilizing
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Wait! 5 things to know before you buy your first home
Until you have done it, knowing the ins and outs of buying a home can be challenging. What is the difference between a fixed- and adjustable-rate mortgage? How do you know how much you'll need for a down payment? And where can you find reliable answers to these questions?Price per square foot also seems to have rebounded. In January 2006, the average sales price for a home in Utah was $240,000.00. December 2012 UAR statistics show the average sales price per home was $242,524. That means that on an average price-per-square-foot basis, we are back to 2006 pricing. And, according to Trulia.com, the average price per square foot in Salt Lake City is $112, which is slightly higher than the 2006 price. Good news for sellers in that area.
2. Get ahead of the competition
According to the Utah Association of Realtors, absorption rates have improved by almost 33 percent, down to a 5.2 month's supply. This means there are fewer homes for sale on the market, creating a greater demand. Prices are stabilizing in some areas and are even going up slightly in others, creating a true "seller's market." Keep in mind that statistics show that anytime you have between a five to six month's supply of housing, you have a "normal" or stable market. Be realistic in your pricing and understand what you are competing against.
"Pay attention to how long competing homes have been on the market," the Wall Street Journal reported. "These days, well-priced homes often sell in a week or two, while homes that languish for months are typically priced at unrealistic levels."
Pay attention to how long competing homes have been on the market. These days, well-priced homes often sell in a week or two, while homes that languish for months are typically priced at unrealistic levels.
–the Wall Street Journal reported
3. Only serious buyers are outWith the mortgage qualifications tightening up, only those purchasers who are serious about buying a home will be in the market. This really raises the likelihood of selling your home. It’s always important to ask for a pre-qualification letter from a reputable lender, but most buyers are prepared with this documentation. Also, according to statistics compiled by Trulia.com, March and April are customarily the hottest months for online housing searches.
4. There will never be a better time to move up
Selling your home will give you the opportunity to continue to ride the appreciation wave, especially if you are looking at a larger, more expensive home. As mentioned, supply is shrinking, which is causing prices to go up. If you are looking to move up, you’ll want to try to lock in at today’s pricing with historically low interest rates below 4 percent.
5. Lenders are paying attention
Most lenders have changed their processes to accommodate a purchase market. That means that they have strategically chosen to process purchase transactions in a shorter timeline than refinances. Refinances have started to slow according to the Mortgage Bankers Association, which manages an activity index for refinances.
As a result of this, you should be able to close within a 30 days of accepting your offer. If your offer asks for more than 30 days, don't be afraid to ask why. Lenders understand the shift in the market towards purchases and want to make sure they can take care of you.
This is a good time to start talking to experts in the housing market. Seek out a local mortgage loan officer who can connect you with a professional Realtor who understands the market and knows what it takes to help you move on.
Amber Wykstra graduated from Weber State University with a degree in business administration with an emphasis in finance. Visit her blog at www.accordingtoamber.com or email awykstra@bankofutah.com.
