Secret of Why Selling Your Gig Harbor Home NOW is the Best Time!
We are finally a few weeks into 2016 and the housing market in Gig Harbor and the surrounding area’s haven’t changed much. We currently have very low inventory, even for the winter months, this is extremely low.
The mortgage interest rates have gone down since the first of the year, but that too, will be short lived. There was a huge surge in conversation when the Fed’s decided to raise the rates across the board, but for now they remain low.
Lets dive in and see why you should sell your home NOW as apposed to waiting until spring or summer or even next year.
1) Housing Inventory is Very Low
Just how low is low? In a normal housing market we would see 6-7 months worth of inventory. Pierce County currently has 1.78 months and Kitsap County currently has 2 months. What does this really mean? It means that it’s a Sellers market and if you have thought about selling your home, but have been hesitant, now is the time to get off the fence.
Inventory is directly linked to "Supply and Demand" and we have no supply, but huge demand! Home Buyers have come out of the wood work due to the low interest rates. This is good news for sellers, but not so much for buyers, because this has created an unhealthy market in the meantime. We are seeing multiple offers and over bidding on homes and this won't sustain or last. I want everyone to also know, this isn't creating another bubble. This is completely localized and will correct itself, if homeowners would get off the fence, and list their homes for sale!
2) Sellers Market?
YES! You read that correctly! Due to the low inventory and the fact that the buyers are out there, we have started the journey down the Seller’s market road. Lets not get too crazy though… The rest of the industry is having a hard time accepting this. Typically, when we are in a Seller’s market prices will go up. They are going up even as I type this out. Since February 2015 to now, we have seen a 13% increase in home prices in Pierce County alone. Since January 2016 we’ve noticed that some homeowners have decided to over price their homes in hopes that the low inventory will secure them above top dollar for their home.
That strategy may have worked back in 2006, but in 2016 it’s a little different. Buyers are smarter than ever before and they won’t over pay for a home! They also have the appraisers on their side. Even though it’s not happening as much as a few years back, we’re still seeing some appraisals coming in very low.
The 3 most important things you need for a successful sale are; Price, Marketing, & How the Home Shows. If one of the 3 is off, you won’t have a fast, successful sale that you hoped to have. Even though there is low inventory, there’s still more to selling your home than demand!
3) Interest Rates are Low!
Why would a Seller care about interest rates? It’s very important for two reasons.
It helps you gauge how many buyers are going to be out in the market
You will be buying another home, right? You need to know how much home you can afford too on your next purchase! If the interest rates go up, there goes your buying power once you sell.
Most Sellers don’t think about this small factor when they decide to sell. This can also help you decide if you’re still on the fence. You might think you will lose some money when you sell. Don’t get caught up in how much you’ll NOT get for your home, because if you sell and buy now, you will be ahead of the game in the long run. Check out the example below!
This time won’t last long! The spring and summer months are traditionally the hot times to sell and we will see more inventory come on naturally due to the time of year, but the predictions are still showing, they won’t be enough to change prices much. The values will continue to go up this year, but at a much slower pace then previous years. Predictions are around 4-5% increase from last year. I think that might be higher in our area, but if you want to capitalize on getting top dollar for your home, NOW is the time to list and sell your home!
Let’s talk about real estate!