Sell Now or Wait?

Tuesday, December 17, 2013

Sell Now or Wait?

Are you timing the market?
By +Sarah Marrinan

Generally, though agents don't like to admit it, the housing market slows at the beginning of winter, and doesn't pick back up until the spring market begins.

This year, experts believe that our local market might keep booming straight through the coldest months.

Why?

Mortgage rates are low

Last spring, as buyer demand soared, rates began to slide up. In September, the Federal Reserve committed to buy $85 billion a month in bonds – a move that should keep rates low for buyers in the near future.

Rents are rising

Despite a major boom in multi-family housing developments, rental prices in the Twin Cities continue to rise. Nationwide, vacancy rates are at an eleven-year low of 4.5 percent; in the Twin Cities, the vacancy rate is at 2.5 percent. As mortgage payments begin to rival monthly rental rates, frustrated renters are encouraged to look into their homeownership options.

Sellers are finally in a position to sell

Median sales prices were up 11 percent in October 2013 over the previous year, and days on the market decreased 27 percent. As more and more sellers come out from underwater and see buyers competing over quality listings, they are entering the market. New listings were up 15 percent in October, showing seller confidence is increasing, too.

Whether you’re buying, selling or considering both, let us help – no obligation and no expectation. Reach out today to talk about mortgage rates, your home value and more.