5 Reasons This Summer is the Best Time to Sell Your Home
Summer is perfect for vacations and outdoor fun. It’s also an excellent time to sell your home if you’re thinking about moving up or downsizing.
The hottest home selling season is spring through summer. Some people don't want to move in the winter, so they hold off until the weather improves. And since the school year ends in late spring, some families plan home purchases around this time of the year, before the new school year starts.
But these are just a couple of reasons to sell your property this summer. If you’ve been on the fence, here’s why you should contact a realtor today.
1. High Demand, Tight Supply
Homebuyers are ready to purchase, reports a recent Buyer Traffic Report from the National Association of Realtors (NAR). This increases demand across real estate markets that have a limited supply, which is excellent news for home sellers. Stronger demand can maximize interest in your property; and with a limited supply of homes, you’re more likely to receive multiple offers which drives up the price of your home.
2. Decreased Competition
Limited inventory and strong buyer demand results in less competition. It typically takes an average of six months to sell a property. Currently, many housing markets have a 4.2 month supply. Homes are selling quicker, which lets you unload your property and move into a new home sooner rather than later.
Of course, inventory can increase at any time. Homeowners unable to sell their properties in the past because of negative equity might plan a move as their equity returns. And with some experts predicting an increase in new construction homes this summer, it’s only a matter of time before supply skyrockets in many markets. If you're thinking about selling, do so before inventory increases.
3. Faster Closings
Understandably, you want to sell and move as quickly as possible. But the closing process is lengthy. It takes an average of 45 days to complete a home sale, and closing timeframes often increase as home markets strengthen and mortgage lenders receive a higher number of loan applications.
If you prefer a quicker closing, now's the time to sell. A recent Origination Insights Report by Ellie Mae explained how closing times have dropped to a new low of 42 days. This will likely increase as more people apply for mortgage loans.
4. Interest Rates and Prices Are Rising
Mortgage interest rates and home values are on the upswing. According to CoreLogic, home prices are predicted to increase 4.9% over the next year. Therefore, a home priced at $100,000 today may cost an additional $4,900 over the next 12 months. Similarly, mortgage interest rates are predicted to increase over the next year, which means it'll be more expensive to purchase a property. If you're thinking about selling and moving into a bigger, more expensive home, upgrading this summer might offer more bang for your buck.
5. What’s Best for Your Family?
The decision to sell your home is a personal one. At the end of the day, you have to make the choice that's best for you and your family, as well as your budget. There are plenty of factors to consider before planning a move. For example, if you sell your house now, will your profit be enough to cover the down payment on a new property? Do you have the credit score to qualify for a new mortgage? Can you realistically swing a bigger mortgage payment? How you answer these questions helps you determine whether now’s the appropriate time to sell.
There's no denying how buyer demand continues to outpace homebuyers in some housing market. And with mortgage rates and home prices predicted to increase, this summer is one of the best times to sell, whether you're looking to upside or downsize. Even so, this isn’t a decision to take lightly. Count the cost, and then make your decision.
If now’s an opportune time to sell, Cherry Creek Mortgage is committed to helping you find the best mortgage loan. Give us a call or contact us to apply for a home loan.