Is It the Right Time to Sell or Stay Put and Wait For Change?
These days so many homeowners are wondering if it’s the right time to move on and move up into a better home. So many questions ensue. How long will it take for the market to be back to normal again? Will today’s interest ratesgo on indefinitely? How can I tell before they begin to climb again? If I wait long enough will my home’s value come back up to what it was just a few years ago? The answers are not so simple but one thing is for certain. Property values take time to climb up and rebound after bouts of the situation that we are facing at present. Here are some pointers that will provide further insight as to why selling sooner may make more sense.
When Incomes Go Up – So Do Property Values
Many industry experts believe the only way for home prices to go back up is for buyers to have higher incomes. Based on this assumption, a good number of homeowners’ expectations that their property will miraculously gain 20% to 30% of value on the market within the next year or so are sufficiently unrealistic. Keep in mind that the average annual income increase nowadays is anywhere from three to five percent, which translates to a waiting period of until at least 2017 before you will regain housing values from a few years ago.
How Long Will It Take For the Job Market To Improve?
As we find ourselves in yet another double dip recession and the nation is struggling to deal with the economy, the unemployment rates in many states continues to plummet or stay where it’s at; a dismally low level. No one can say how long it will take for the job market to improve but analysts predict that though process will be slow it will happen.
Interest Rates Are At “Go Get ‘Em” Levels
Being able to finance a home was much easier just a few short years ago but having said that the fact of the matter is that now, interest rates make up for the otherwise detailed and careful application and approval process. While in the midst of a 30-year low, interest rates at about 4-4.5% clearly indicate this is a very good time to buy a home. Of course, for owners of existing homes this can mean a loss on the property they sell but by moving into a home that will most likely increase in value in a few years’ time it offsets the loss.
Keep Living But Live Happier
Why not wait for the market to improve before selling your existing property and moving into another? The return on investment can be significant when you factor in the changed interest rates regardless of improved property values. Consider this: Sell an existing home for $200,000 today and buy up into a new home worth $320,000 at the current low interest rates, versus wait for 5-7 years to sell the home, which by then might be worth $220,000. The interest rates by then to purchase the same new house worth $350,000 will be at least a couple percent higher. The end result is about $12-$15,000 in savings by selling and buying sooner – and that many more years of happiness.
A few other things to consider are whether or not you are willing or able to maintain your existing home or would you prefer moving into a condominium or relocating to a warmer climate? Would this be a perfect time to sell your property and invest in a dual home that can also be rented out for some additional income? Also, how can you be sure your property value will not dip even further as you wait the market out? Wouldn’t you want the freedom to at least be able to get into a newer home, at a great price because of the current housing prices?
The best way to really know what steps to take is to contact your Realtor for an in-depth consultation and to learn whether now is the perfect time for YOU to sell.