Senior Spotlight: Signs You Still Have Time To Sell
Worried you waited too long? Have no fear - demand is still here.
You’ve seen the headlines – home prices are rising at a slower pace and inventory is starting to increase. If you have lived in your home a long time and hoped to maximize your ROI, you may be wondering if it’s too late. Have you missed your opportunity? Will new builds beckon buyers instead? Is there still time?
In short the answer is yes – these 5 reasons featured on The Ascent (a publication dedicated to everyday money matters) are an ideal summary of ‘why.’
#1: Low Rates. They are still here! Industry experts assert that mortgage loans will remain in demand so long as rates hover around 3%. While there is no crystal ball, the Feds are expected to keep the prime interest rate to zero through 2023. This is not the rate we pay on a loan of course, but it is the foundational rate that banks use to set rates.
#2: Ongoing Inventory Struggles. It’s not just here. There are more potential buyers than properties for sale with virtually every region of the US experiencing a below normal 'months of supply' measure. Even small increases in inventory are a FAR cry from meeting demand.
#3: The Growing Buyer Pool. With millennials now surpassing Baby Boomers as the largest generation, many in this life stage are now finishing school and planting roots. In the past 3 years, millennial home ownership has climbed from 40% to 47.9% and is projected to be responsible for 15 million homes sales over the next 10 years. In short – homes wanted.
#4: Builder Backlog. It’s no secret that we need new homes to meet homeowner demand; however, labor shortages and surging material costs are only slowing the development progress that we needed yesterday…and the day before... and the day before...
#5: Pending Sales. NAR® has reported that pending sales are up 13% in 2021 compared to 2020, and that this is a forward-looking indicator of the market in coming months. Keep watching this number to see what the market may do (also note that a drop in pending sales can be a sign of not enough homes on the market – no one can buy if no one is selling!).
Still trying to strategize? Not sure if selling this fall or next spring makes more sense for you? Wondering what to expect from home prices and buyer interest through the rest of the year?
Just ask. Anytime.
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/
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