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by Robert DeFalco
on Tuesday, January 31st, 2017 at 2:20pm.
If you've been considering whether to sell your home, 2017 is your year! We've got four reasons, via Realtor.com, why you should make your plans and sell now!
“Sellers have been in the driver’s seat for the last two years, but this year is shaping up to be even better for several reasons,” says Jonathan Smoke, chief economist of realtor.com®. “Nothing is bad for sellers today.”
Experts predict a prime market for sellers in 2017, and here's why.
Low Mortgage Rates
Lower rates mean lower costs to buy, which does tend to motivate would-be home buyers.
Although mortgage rates have been ticking up since mid-October to slightly over 4%, the rates for a 30-year fixed mortgage—the most popular home loan—are still hovering near 30-year lows. For now.
Rates are expected to continue upward. This means many buyers, armed with that knowledge, are motivated to buy quickly to lock in a lower rate for themselves.
Inventory is shrinking. It's as simple as that.
Let’s put it in perspective: In 2007, just before the housing crash, existing home inventory peaked at 4.04 million homes for sale, according to NAR data. Fast-forward to November 2016: There were only 1.85 million homes for sale, 9.3% lower than the year before—and a whopping 54% lower than the 2007 peak.
That means that sellers have less competition with other sellers, and more buyers hoping for their chance.
And get this: Not only are there fewer homes for sale, but the time those homes have spent on the market has decreased year over year as well. If priced correctly, the typical home should move quickly, Smoke says. And that’s another boon for sellers.
Prices Are Rising
High demand and low inventory are behind the climbing home prices.
Higher prices particularly benefit the seller whose property value plunged during the recession, sometimes to less than he owed. Thanks to rising prices, many homeowners whose property was underwater can now sell without suffering a big loss.
2017 may end up a 'balanced market', where both home sellers and buyers benefit from the economy.
A Better Jobs Market
Changes to the job market and a boost to the economy overall will create more spending.
As unemployment decreases and wages (finally) increase, consumer confidence will climb. Increased confidence will spur buyers to jump into the market—which is, you guessed it—more good news for sellers.
With everything considered, 2017 may just be your year to sell!