It is no secret that selling your home during the winter months can prove to be difficult depending on what part of the country you are in. This year has proven to be no exception as many states are dealing with their worst winter in years. Even if you aren’t dealing with the ice and snow many buyers hold off on buying until the calendar turns and summer is in focus. If you are considering selling you can take advantage of one of the best times to be a buyer. With an increase in inventory coupled with low interest rates now is great time to buy or sell a home.
Your property is only as good as the demand you can create. One of the main ingredients in buyer demand is buyer affordability. Mortgage interest rates have hovered at or near record lows for the better part of the last twelve months and are not expected to increase sharply any time soon. This means that buyers will be able to afford more home for their buying dollar. Additionally there have been some subtle changes to loan programs and lending guidelines. The amount of monthly PMI (private mortgage insurance) on FHA loans was just recently reduced meaning that more qualified buyers are hitting the market just in time for the spring season. More buyers equals more demand and more demand means higher home prices.
There is also a slow push from lenders to tap into the first time home buyer market. There has already been a reduction on the amount of down payment required on conventional loans from 5% down to 3% and this is seen as only the tip of the iceberg. If more first time homebuyers are able to purchase that will further add to the buying pool and push home values higher. We will never see a run on products like we did before the mortgage collapse but there is expected to be many more programs aimed at capturing the first time homebuyer market this year.
The number of renters has increased every year since 2009 and this may be the year that those people start looking to be homeowners again. With more first time homebuyer programs there is also a sprinkling of programs for homeowners who have had past foreclosures or bankruptcies. The will further add to the buyer pool and not only give you more buyer options but push your home value up as well.
Bad weather exposes property flaws that can push a renter or homeowner over the edge and towards looking for somewhere else to live. If you have been putting off listing your house we could be entering the best time to sell that we have seen in a long time. There has never been a better time to buy in years and many buyers have been just waiting for the right time to get back in the market. You can go nuts trying to pick the perfect time to sell but this spring figures to be as good a time as we have had in a long time.