Your neighborhood is getting crowded. Your new family is growing fast. Your new job is too much of a commute. You’re expanding your Etsy business and need room to grow….
There are a million reasons to move up from your first home to something larger, more comfortable, or closer to town. If you’re a homeowner who’s been thinking about making that move, now is time to stop thinking and act. Despite the dire news you may have read recently about real estate affordability and inventory, the current state of the market has created the best environment for current homeowners like you to move up to your dream home. Here’s why:
High Demand for Low-Range Homes Means More Negotiating Power for Sellers
Despite monthly gains, housing inventory at the end of April is still 3.6% lower than it was in April 2015, and unsold inventory sits at a 4.7-month supply at the current sales paces. Anything under 6 months is a seller’s market. That means that as the seller, there is more demand for properties like yours and you have more negotiating power against buyers who are competing against many other buyers for the same properties. Buyers at low ranges are paying more for homes right now than they would if the market was flooded with property choices.
Less Demand for Mid-Range Homes Means More Negotiating Power for Buyers
In WNC, the housing market is currently more active at the extremes. First-time home buyers are snatching up affordable properties wherever they can, and our luxury market remains healthy. But there is currently less demand for mid-range homes. As a homeowner looking to sell and more up to a mid-range home, that gives you more negotiating power for your next dream home. Mid-range sellers whose homes have been on the market for several months already are more open to discussing upgrades or amenities that could make or break your purchase.
Mortgage Rates are at Their Lowest Level in Years
According to Freddie Mac, the average 30-year, conventional, fixed-rate mortgage rate is currently at 3.61%, the lowest rate since May 2013 (3.54%). This is great news for buyers in the market right now who are able to lock in this low rate! It’s also great news for home shopping, according to NAR Chief Economist Lawrence Yun. “The temporary relief from mortgage rates currently near three-year lows has helped preserve housing affordability this spring, but there’s growing concern a number of buyers will be unable to find homes at affordable prices if wages don’t rise and price growth doesn’t slow,” says Yun.
Which brings us to our last reason to move up now:
Home Prices are on the Rise, and Will Continue to Increase
After last decade’s housing crisis, the ripples of which are still being felt, many current homeowners are skittish about moving up. However, if you make a smart purchase that isn’t too far out of your means, your move could pay off in the long run. As we’ve reported, home prices are on the rise and won’t slow anytime soon. In WNC, Q1 home prices were fully 9.2% above Q1 2015. Investing now means you won’t be priced out of your dream home, and that you are able to take advantage of that appreciation before you choose to move again.
Bottom line, if you’re considering a move up to the home of your dreams, it is in your best interest to invest sooner than later. You can negotiate a great return on your current home, a substantial savings on your new one, and take advantage of low mortgage rates while your new home’s value only continues to increase.
All real estate is local. In order to make confident real estate decisions, we believe it important for you to have timely and neighborhood-specific information. If you would like more information about what kind of home you can afford, our experts at Beverly-Hanks are here to help. Contact us today to speak with a Beverly-Hanks real estate agent about buying homes and land in our area.