Home sellers have been disheartened by the housing market over the past few years with home values continuing to drop and inventory at an all-time high. However, in recent months, the housing market has seen a dramatic change, and here are several reasons why this may be the year you want to make a move in the real estate market:
Sellers who are looking to sell their home for relocation purposes, downsizing or just moving to another neighborhood should be elated with the drought in housing inventory at present. In almost every city across the United States, you’ll find that there is a significant lack of homes for sale and buyers are scooping up what immediately comes on the market. Fortunately, this is advantageous to the seller, and the forecast for this trend is expected to continue.
The employment outlook is on the rise and this is great news for sellers. As the economy improves and job growth expands, people are in a better position to purchase a home. This especially bodes well for first time buyers and those who are looking to locate to a larger home.
The average rate for a 30 year fixed mortgage is below 4 percent and mortgage rates are expected to continue to stay low for the remainder of the year. This makes it affordable for buyers to test the waters and experience home ownership. There are also an assortment of other options with low rates such as an ARM, conventional and FHA mortgage.
Home Prices on the Rise
As the market continues to show signs of improvement, home prices are slowly increasing. The number of days to sell a home is also getting better, but it’s not quick enough for some. Sellers who are in desperate need to relocate or get rid of a home due to financial hardship may be frustrated with the lack of quick activity and a reputable cash for homes buyer can aid in this type of transaction.
Not everything is rosy in the real estate market and banks and lending institutions can be a primary drawback in obtaining a loan. Guidelines and stringent regulations are still in place and mortgage lenders are extremely strict about rules pertaining to loans. Buyers with poor credit history are still unable to qualify at a reasonable interest rate, if at all. For those unable to obtain a loan, it’s recommended that you pay down any debt and polish up your credit history before you try re-applying.
Homes that are foreclosed and bank owned are still on the rise, making the housing values difficult to climb to where they once were. Homeowners at risk for losing their home should seek the help of a bank or real estate attorney to see if there is anything that can be done to salvage their residence.
1) Help from a real estate attorney – make sure all your rights are intact, and that the bank or mortgage company isn’t just harassing you unduly.
2) Sell home through a cash buyer/renovator – the upside is that it will keep the neighbors happy as these companies generally will improve the property substantially before reselling.
3) Try to renegotiate your existing loan with the bank – usually they won’t even consider it until you are near foreclosure, but it’s worth a shot.
The year ahead may prove more favorable than not for most sellers. If these same current trends and improved economic forecast continue throughout the year, the forecast for 2014 could seem even brighter.
As a former real estate brokerage owner, Molly Sherman has seen the market both soar and plummet throughout the United States over the past 10 years. After several years of economic devastation in the housing market, it’s good to see the upward trend of being able to sell your home as well as the relief from neighborhoods with multiple foreclosure signs.
Tags: selling home
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