Is it possible the secret is out? While conventional wisdom dictates that the spring market is the best time to buy or sell a home, this winter has been my busiest ever! Inspired by my forward-thinking clients, I've outlined the top three reasons why I believe it doesn't pay to wait.
1. Interest rate are increasing: While it’s impossible to pinpoint exactly how interest rates will trend this year, projected averages forecast 2.5 rate hikes throughout 2017. And while the fluctuations may look small, even a half percent up or down can have an impact on monthly payments. For example, according to this article, the monthly principal and interest payment for a $225,000 mortgage saw the following adjustments:
- 4.17% average rate in 2014: $1,096
- 3.85% average rate in 2015: $1,055
- 3.57% rate in June 2016: $1,019
2. The ratio of buyers to inventory is high: Though many buyers believe that one of the reasons to wait for the spring market is increased inventory, at least in the past few years this hasn’t actually been the case. Last year we we were at about five months worth of inventory through May. On the flip side, buyers who shop now see less competition.
3. Embrace the off-season: Instead of competing with all the other spring buyers, embrace the relative quiet of the winter market along with the lawyers, lenders, and movers who will have the extra time to make your transaction as smooth as possible.