The Wall Street Journal reported that existing home sales increased at a 5.1 % (seasonally adjusted) rate (Feb 08 vs Feb 09). But a large part of this gain (nearly 50%) is due to "distressed" properties - those priced 20% below normal market prices.
What about the Connecticut Shoreline? Since the major buyer activity nationally is in So. California, Las Vegas, Arizona and Florida, our local area is not as rosy. Our existing home sales were much lower in February, but recently, activity has picked up. More buyers (who have been holding back, waiting for some better news) are calling and asking for showings.
It's also interesting that some buyers are thinking longer term: buy a good building lot now while prices are still low, and build later when they can sell their home for a better price. Not a bad strategy!
But what if you are thinking shorter term; upsize? Downsize? Buy now or wait? Here are five reasons to list your house now:
1. Interest Rates: still very low, near 5% or lower on 30 year fixed mortgages.
2. Sell Low, Buy Low: If you have to accept a lower price on your home now, you'll be buying at a lower price so you'll make up the lower price on your next purchase.
3. Buyers that are in a rental or condo are moving up and they are finding a good selection of homes. Sellers - you need to have your home on the market to capture these people.
4. There are more distressed properties (foreclosures, short sales) in the market which brings buyers out to look - many get discouraged when they find these properties are priced low for a reason - often, they require significant funds to make them livable. A large portion of buyers then start looking at better properties: yours!!
5. People are always moving -- in up and down markets, someone's relocating, upsizing, downsizing, getting married, and they're going out to open houses on Sunday's and you need to be ready for them!
So it makes perfect sense to move on with your life - if you've been thinking about selling, call us; we'd be happy to do a market analysis on your home at no cost or obligation. Give us a call!