We have all heard the negative news in the housing market. However, locally, things are not bad at all. See for yourself in this Market Update. The fact is, if you are considering moving up to a larger home, there may not be a better time!
Sure, values are not where they were in the “good ole days”, however, when you look at the big picture, you will see that there has never been a time like this in history to make your move more profitable.
Take into consideration the following:
Percent of Net Loss/Gain
Let’s say for argument’s sake, that if you were to sell your home in today’s market, you would take a 10% loss over what you desire to receive. We are all playing on a level playing field, so we would also have to consider that the seller of your move-up home would also take a 10% loss. Based on your existing home value of $200,000 less 10% we are looking at $20,000. On the surface, that is not a loss you would want to take, but if the prospective home’s value is $400,000, the net loss to the seller would be $40,000, yielding a $20,000 net gain to you. The converse is also true. If the market is up, you may gain $20,000 on the sale of your home, but lose $20,000 on the transition.
Pick of the Litter
The primary reason we see sales prices of homes being less at this time is the old “supply vs. demand.” What this means to the buyer is that there is plenty of inventory in all price ranges to choose from. Through my experience, there is really no such thing as the perfect home, but you can get a lot closer to what you desire than you would be able to in a “Seller’s Market.” In times past, you may have been reluctant to sell before you had located you next home. In today’s market that simply is not necessary with the larger inventory.
Interest rates continue to hover at an all time low. They have not risen as expected, and though they probably will not go down much more, when the market gets stronger, we will see a rise which would also cost you money every month. Again, the news reports how bad the mortgage industry is, and yes they do have issues, but they are still lending money. You have the opportunity to leverage a simple interest rate for 30 years in the 4% range. Hello??? Bueller? Bueller?
Timing is everything, and if you are considering making a move, this truly is a great time to do it.