First, of course, we could note what others think. The recently-released May 2013 National Housing Survey by Fannie Mae showed that 40% of responders said that now is a good time to sell a home. That is up from only 16% in May of last year. At the same time, 76% of Fannie Mae's responders said that it is a good time to buy a home -- just a little more than the number of those who thought so last year. Redfin has surveyed real estate agents on the same issue. 82% said that now is a good time to sell, compared to 54% last year.
Probably the best reason for thinking that now is a good time to sell is because now is a good time to buy. "Wait a minute!", you say. "How can that be? Isn't it contradictory?" Well, no, it's not. Whether it is a good time to sell or a good time to buy isn't like a zero-sum game where what's good for one is necessarily not good for the other. Good conditions for buying can mean that there are more potential prospects to sell to. Moreover, just because the conditions for buying are good doesn't necessarily imply that prices must be low. Of course, if they are extremely high, then that won't be a good time to buy.
The low interest rates that have recently been available have done two things for sellers. They have created a larger pool of potential buyers and they also have made it possible for prices to rise without shutting out those buyers. This will not, however, last forever. Even now we see occasional headlines that say things like "interest rates recently roared back up to 4%". (Who ever would have thought that 4% would seem high?) While they currently seem to be in a floating back and forth mode, some day the Fed will reverse course and they will begin to rise.
Another reason to think that now is a good time to sell is because inventory is still low, meaning there's less competition. To be sure, inventory is creeping up in many markets, but it is still historically low (60% of the peak in 2007). Why is inventory so low? There are disparate reasons, but certainly one of them is the belief that prices will continue to rise. Some people want to wait for that to happen. It is not just owners who think prices will rise. According to the same Redfin survey, 44% of agents thought that prices will rise "a lot" in the next twelve months. Only 11% thought that last year.
Whether it is a good time to sell is always, ultimately, an individual question. What would be the reason for selling? Would it entail another purchase?
Gail Sutton, Gail Sutton Properties, is an experienced real estate professional. For 20+ years, Gail has served hundreds of clients, and bought and sold hundreds of millions of dollars in real estate. Gail's passion is helping individual clients enjoy the buying and selling process by fulfilling their dreams of quality home ownership. Gail Sutton KNOWS the real estate market in the Colorado Springs, CO. region. Give her a call to discuss your plans to buy that perfect home for you or sell and list your home, gather information, and find out what Gail can do to get you the best market price with the least time on the market!
Call Gail at 719-362-9702. Visit www.GailSuttonProperties.com
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