Should You Sell Your Home In A Seller’s Market?
Home prices rose 6.7 percent year over year from 2017 and are expected to rise another 4.7 percent from February 2018 to February 2019. Is this the year that you should sell your home & cash in on the equity that it’s gained? The answer to the question is a personal one and depends largely upon your financial situation. How has your lifestyle changed? If you have a growing family that’s living in small quarters in the starter home you purchased 9 years ago, the answer may be a resounding, “Yes!”. Maybe you’re downsizing from the home you’ve raised a family in for the last 20 years, as the kids are now in college you’ve been thinking it’s time to buy that smaller house with mountain views in Asheville. Whatever your situation, continue reading to ask yourself some important questions to help you in your decision making process.
What’s Your Home Worth Now?
Having a fair idea of the current value of your home will help to answer how much equity you’ve built since you purchased it. Listing a home that’s appreciated 37% since 2009 means that you’ll have the cash to put down on a new home, as well as moving costs and any renovations you may make on the new home. Be sure to call a licensed Realtor to provide you with a CMA (Comparative Market Analysis) which will provide you with a list of homes sold in your subdivision or neighborhood.
Do You Have Negative Home Equity?
According to CoreLogic’s Homeowner Equity Insights Report for the 4th quarter of 2017, negative home equity has dropped nationwide. As home prices have risen 37% since 2009, the amount of mortgages that have negative equity is down to 3.7% in North Carolina alone. This means that you’re more likely to have positive cash flow should you decide to sell your home. If you still have negative equity, you may want to wait a little longer as home prices continue to rise.
Do You Have Enough Money Set Aside to Move?
According to the American Moving and Storage Association, the average intrastate move costs $2,300.00 and out of state moves cost $4,300.00. You can help keep costs down by getting rid of unnecessary items such as unused bedroom sets or by packing items yourself. You’ll also need to clean the home you’ve just sold, so that it’s ready for the new owner. It’s a good idea to clean carpets & do your final mow of the lawn and landscape grooming. If you’re too busy getting your new home ready, you may want to pay for a service to clean the old one.
What Type of Home Can You Afford To Buy?
If you’re selling your home to cash in on a lot of positive equity, then you should be able to afford a hefty down payment on your new home. But what if the cost of the new home is much more per month than you’re currently spending? Can you afford a larger home or more money per month? Find out if you can afford the new home mortgage by doing the math with a mortgage payment calculator.
What are the Top 3 Reasons to Sell Now?
- There isn’t enough inventory on the market for buyers today. There are only 2.84 months of inventory in Buncombe County for homes in the $300,000 – $349,000 price range and 2.15 months of inventory for homes priced between $250,000 – $299,000. If your home is in great shape and doesn’t need many repairs before you put it on the market & it’s priced right, it could be sold within 27 – 80 days and at 97% of list price!
- Mortgage rates continue to be low, with current average 30 year rates at 4.44%. Rates are predicted to rise a few more times this year, but will still be low compared to previous highs. Buyers continue to enter the market and are competing for homes.
- Home prices have risen 37% since 2009 and are predicted to continue to rise this year by 4.7%! If you’ve finally recovered the equity in your home, you may not want to wait too long to sell as interest rates are forecast to rise.