Why May Means Higher Selling Prices for Homeowners
Selling a Home? Late Spring Is Shaping Up to Be a Winner
Spring is traditionally a great time to buy or sell a home because the real estate market starts to come alive after a long winter lull. This is due in part to the fact that most families looking to buy start their home searches early with hopes of being in their new homes before the start of the new school year.
With market inventory at a premium coupled with recent interest rate changes, this May is shaping up to be a good month for sellers because home prices all around the country are rising.
High Demand, Low Inventory Sparks Bidding Wars
“We have multiple bids,” is the one phrase a home seller can’t wait to hear because this means the potential for a bidding war to develop is heightened. And, because of the low inventory and high buyer number expectations for this spring, experts are anticipating an intense seller’s market through May.
As long as the economy remains strong and unemployment continues to drop, the housing market is a good one for sellers, despite the expected continued rise of mortgage rates.
More Millennials Are Entering the Housing Market
For the last few years, millennials and baby boomers have been the two population groups driving the housing market and this is going to continue in 2017, especially among millennials as more and more enter the market for the first time. Emboldened by higher incomes and greater job stability, these young Americans will be homing in on properties priced $500,000 and over.
May Is Traditionally a Great Month to List a Home for Sale
If you’re a student of history, then you’ll appreciate the fact that May is our country’s best month to list a home for sale. Why? Because homes that are listed between May 1 and May 15 sell at an average of nine days faster and for an average of 0.8 percent more than homes listed at any other time of year. For even greater results, list your home on a Friday or Saturday.
Secondary Markets Are Heating Up
At one time, home buyers were flocking to coastal metro cities like New York, San Francisco, Miami, and Los Angeles. This has caused the housing prices in these cities to skyrocket and as a result, buyers are shying away from them for more affordable secondary markets. This May, you’ll see smaller markets like Milwaukee, Tampa, and Nashville performing exceptionally well for sellers.
Mortgage Rates Are Climbing, Slowly but Steadily
The 2016 election was especially hard on the country, and the housing market wasn’t spared. The new president’s election fueled the mortgage rate to climb above four percent for the first time in two years. While still considered low, this is a trend that is expected to continue, especially as president Trump’s tenure is continuing to prove to be just as unpredictable as he was during his run for office.
How much the rates are going to climb is anyone’s guess, but they will play a role in spring’s selling surge as buyers try to secure their mortgages before the rates climb any higher.
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