For anyone who’s thinking about selling their house, now is a great time to take action. Sellers are calling the shots at the current real estate market and this trend is likely to continue. Selling a house in this circumstances can give you a great opportunity to get a high return on investment.
Interest rates will go up again
The interest rates have been kept low for a long time, to make it easier for home buyers to pay off their mortgage. Many people believe that a rise in interest rates is imminent and nearby. The Federal Reserve has hinted about interest rates going up, which is a very clear indicator.
Interest rates going up, have a huge impact on potential buyers. This group of people is pushed to action as they want to profit from low interest rates while they still can.
To make it easier for first time home buyers, there are loans available at very good rates as part of the Federal Housing Administration. This type of loan has been used more than ever. It has accounted for the financing of 23% of condominiums and family home sales, in the last few months. This makes the group of people looking for a house to buy, even bigger.
The demand for houses is stronger than ever before
Demand for houses hasn’t been this strong since February of 2007. The amount of house sales in June this year, is even higher than 2006’s peak. This large increase in home sales makes today’s real estate market a seller’s market.
The house absorption rate is even higher than the amount of new houses entering the market. If this trend was to continue, the supply of available houses wouldn’t even be enough to keep up with the demand. It’s a clear indicator for house sellers that this is the moment they’ve been waiting for.
Prices are going up
The rapidly increasing demand for housing will surely drive prices up. This price increase is very visible in the sales statistics. June of this year has seen single-family and condominiums being sold an average of 13% higher than the appraised market value. Median home prices haven’t been this high since July 2006.
These figures clearly show the positive sentiment in the real estate market. In the last 10 years at least, there hasn’t been a better time to sell a house. Spring is usually the best time to sell but the amount of potential buyers looking for a house is actually larger right now. Once the interest rates start going up and the amount of houses on the market increases, it might be too late to get a good deal on your house.