New Year, New Home: Is It Time to Move?

There are a lot of good reasons to consider moving and selling your house in the coming year. The market is primed for your property. Here a few things to consider in favor of selling.

Homes Are Selling for More Than the Asking Price

You don’t have to venture far into the internet to hear buyers lament about homes that ended up selling tens of thousands above listing price. Those anecdotes, however, can offer a distorted picture. In Spring 2021, about a third of homes sold for more than they were listed for, likely because of bidding wars and intense buyer interest. That also means that some two-thirds of homes on the market sell at or for less than their asking price. If you’re selling, you should understand that selling for top dollar is not a given, even in this market, and that working with a good agent can help you get the best return.

Mortgage Rates Are Historically Low

Mortgage interest rates have been at historic lows for about a year. Interest rates on 30-year, fixed-rate mortgages have hovered around 3% — and have even dipped below that at times. In fact, the decline in mortgage rates from July 2018 to July 2020 was substantial enough that it more than offset the rise in home values during that period. Rates were much closer to 5% as recently as late-2018, and consistently hovered between 7% and 8% for much of the 1990s. The low rates have pulled buyers into the market mainly because the low interest rates boost buying power and make homes more affordable. For instance, a buyer would pay 6.5% more every month in interest if their rate was 3.5% instead of 3%. That bump doesn’t amount to much on smaller mortgages, but adds up quickly for larger mortgages.

Buyer Demand

Especially if you live in a place where home prices are climbing fast and bidding wars are common, homes are likely to see plenty of buyer activity well into 2022, especially at entry-level prices – often purchased by first-time homebuyers. The price range that’s considered entry level depends on where you live – typically it's considered the lower third of home sale prices for an area.

Call Lesa Miller at (812) 360-3863 or go online at HOMEASAP.COM/67278 where you can read her posts on other social media accounts and websites.