You Should Sell your House Right Now! Here’s why…
I was checking my daily updates on Facebook today, when I came across a post from some FB Friends asking their community to wish them luck on getting their offer accepted, because it’s crazy competitive! Part of me wanted to reply and tell them that they have the wrong agent, because they wouldn’t be worried if they were working with me; however, I resisted. 🙂
This innocuous FB post is just another indication of and insight into the current climate of real estate in Boston and the surrounding metro area. While this might sound daunting to a buyer, this is great news for a seller! Why should now be the time that you sell your home in order to get the most return on your investment? Here are 5 reasons that you should sell your home now:
5. Lack of Inventory
I am sure you have heard this before, but it bares repeating: Supply and Demand. There is a lack of inventory (sellers) available for folks that want to own (buyers). This means that the need to make your offer stand out and be accepted over all the other offers takes a bit of extra oomph i.e. higher prices, lack of contingencies and even cash offers. This mostly works in the seller’s favor.
4. Historically Low Mortgage Rates
You may have been in the market when rates were up to 15%? Over the last 30 years, the mortgage rates have been on average about 8%. Even though the rates have begun to rise, it is possible to get a mortgage in the high 3’s or low 4’s. That is incredible buying power.
It is also true that you do not need 20% down to purchase now. There are many alternative programs that allow for 10%, 5%, 3.5% or 3% down too. If you need a recommendation for a great lender, I am happy to point you in the right direction.
3. Wages are on the Rise
Since the Great Recession, most housing markets have been struggling to climb out of the hole that was created by the recklessness of Wall Street and other factors. If you owned in downtown Boston, Brookline, Cambridge or even Somerville, the affects of the downturn on those housing prices were minimal. For the rest of us regular people out in the suburbs, markets such as Malden, Framingham, Quincy and parts of Boston are just now starting to break even on the List vs. Sale price of a home and the appraised value.
Additionally, salary prices are on the rise. This can translate into more buying power and thus more buyer’s in the market. This brings us back to point #5…^^^
2. Home prices are still going up
Markets go up and markets go down. Since 2009, in Cambridge, downtown Boston and Somerville, housing prices have increased on average of 9-10% per year. Buyers see this and are attempting to get into the market before next year and the next downturn of the market. Often, buyers go to great lengths to purchase and get out of this competitive market.
Industries such as Biotech and large Pharmaceutical companies are continuing to thrive and grow in and around Boston. Some of the countries’ best schools are located just across the Charles River in Cambridge and about 60 or so other local Universities and Colleges. The need to house the influx of students and workers have created a thriving rental market. Investors see high returns on their investment which in turn draw National and International Buyers. This trend will only work in your favor as a seller. Timed correctly with the right marketing and you will earn top dollar for your home.
1. Millennials are turning 30
For the first time last year, Millennial’s have out-numbered the Baby Boomer generation. With the trend of Millennials seeking to get out of the rental market or out of their parent’s homes and into home ownership, Baby Boomers often help their younger generation with down payments, closing costs and other assistance with a home purchase. I often have clients that are able to waive mortgage contingencies, because their parents are able to ‘back the offer’ with cash. Additionally, I have seen clients buy with their parents’ on the mortgage to increase assets and qualify for more financing too.
Whatever your reasoning, it is time to sell! Contact me today to find out how much you can make.