Is Now a Good Time to Put Your House on the Market?

Hi there, 

Here is another question I always get in the spring:

"Should I Sell my Home Now or Wait till Summer?" 

 You need to consider that Spring comes very late in Duluth due to our wonderful climate. Which means there is plenty of pent up demand with lots of eager buyers out there, whereas in other parts of the country they'd have been already out house shopping over a month ago.   

This is probably a question that has been nagging at a lot of people's minds recently. There are three reasons why now is a great time to put your home on the market.

Low Supply + High Demand + Slight Rise in Rates = Steady appreciation of 3-6% in 2014

 

1. Inventory is at an all-time low right now:  Supply and demand play a big part of real estate prices and right now supply is extremely low. Currently, there are only 522 homes and condos available for sale in Duluth.  And 207 of those listings are Pending (Messina & Associates Represents the buyer or seller in 113 out of these 207 deals!)  I expect inventory to double once we approach "Summer" in July, so now is a great time to beat the rush and get your home listed.
2. Time Your Listing Well: What I mean by this is that you must put your home on the market when buyer activity is peaking. If you take a look at this map from Trulia, search activity for homes peaks during May and June, not during the summer as most people would believe. Missing this peak could prevent you from getting the best price on your property.
3. Interest Rates Will Rise: What this means for you is that waiting will cost you money. The National Mortgage Bankers Association expects rates to rise from 4.5% to 5.4%.  There is no reason not to take advantage of these low interest rates. Right now is a great time to sell due to the low interest rates for Buyers. We know for a fact that rates will increase over time so holding out for a better rate is the equivalent of rolling the dice in Vegas. Not a highly predictable strategy. 

These three trends are all indicating that you should sell your home as soon as possible to get the best possible price for it. If you have considered putting your home on the market and would like any more information on timing the market right, please contact me!  

Keep the questions coming.

I love answering your real estate questions!

Your Realtor, 

Luke

Luke Hansmeyer, Real Estate Professional
Real Living Messina & Associates, INC.
1512 E Superior St, Duluth

Email- LHansmeyer@Live.com
Office - (218) 728 - 4436
Direct - (218) 260 - 7722


Check out my website to view all of the areas listings!!
http://www.realliving.com/Luke.Hansmeyer

How do Interest Rates Effect Your Buying Power?

Hi there,

As we all know, as time goes on the cost of just about everything rises with inflation.   Bread, Gas, Milk and of course the average cost of a home have all risen in the past 20 years! 

However the cost of "Purchasing" a home has not gone up, due to historically low interest rates.

With a lot of industry leaders saying interest rates are due to rise soon, one of the questions buyers have now are; "is now the right time to purchase a new home?"

Interest rates are currently only at 4.5%.  If you were to take that 4.5% interest rate and wanted to spend a little over $2,000 a month on your mortgage payment, you would be able to purchase a $400,000 home.   If you wait until 2015 when interest rates are expected to be (5 - 5.5%), that same $2,044 a month payment will only get you a $360,000 home.   In other words, you will lose $40,000 in buying power if you wait until rates go up, which they inevitably will. 

If you have any questions about buying power and how this will effect your buying power - please contact me, I would love to answer any questions you may have, thanks!

Talk soon,