Home sellers have been sitting on their listings for a year or more, waiting for home values to increase. When the intent is to sell an existing house and trade up, some home sellers can fall into a familiar pattern of holding off too long, waiting for a more appealing market. Many have invested in upgrades to the home they plan to sell, and are afraid of losing money if they let it go in the wrong market.
And so they’re willing to wait as long as it takes for home values to rise, when in fact the market is already gathering momentum that will soon leave hesitators in its dust.
Sellers were holding this same round table a year ago, choosing to wait for a market that would boost their home’s sale price, and that’s certainly understandable. But that logic doesn’t take into consideration all the factors at play here. We’re saying that if you intend to sell your current home in order to trade up to some bigger and pricier, now is the time to move.
Interest rates on a 30-year fixed mortgage are at 4.49 percent right now. By the end of this year, interest rates are expected to reach 5.5 percent, almost a full point higher. But taking advantage of the current low interest rates isn’t the only reason to sell your home in order to trade up now. While you’re waiting for your current home’s values to rise, the home you have your eye on is also experiencing an increase in value. . In fact, waiting can get you priced out of the home you were hoping to buy.
Over the past 12-14 months, the average home selling price in New England has increased each month compared to the same month one year earlier. In October 2013, the average selling price for homes in the Northeastern United States sold for between 5 to 16 percent more than in February 2013.
If you’re planning to trade up to accommodate a growing family or simply because you want more space, doing it now will save you money in the long run, whereas waiting another year is more than likely going to cost you dearly. We’re experiencing a low inventory of available homes across New England at this moment, and with a lower inventory comes higher demand driving prices up.
In New Hampshire, a single-family home that sold for $216,000 in February 2013 was up 18 percent to $256,000 in February 2014. And prices are expected to increase steadily, with some areas expected to match the peak housing prices of the mid 2000s, just before the housing crash. With prices on the rise, more homeowners are expected to put their homes on the market, eventually eliminating today’s low housing inventory and creating a new glut to drive prices back down.
If you’ve been waiting to sell your home and trade up, now is the time. Between rising interest rates and rising home prices, the housing market conditions right now are as good as you’ll see for at least another year. Talk to a licensed Real Estate professional in your area and find out more about housing prices and how this market fits in with your plans.