Thinking of selling your home but not sure if now is the “right time?” The most common reasons why people decide to sell their homes include changes to their financial status, an employment transfer, a growing family or retirement. Today’s low interest rates have also made it attractive for many homeowners to “move up” to a larger home. Whatever your reason, selling a house is a complicated procedure so it’s imperative to have a qualified real estate professional on your side. Because selling a home involves large sums of money and complicated legal documents, a REALTOR®’s expertise can help a homeowner avoid costly mistakes. A REALTOR® can also assist you in determining your home’s market value (ie. it’s probable sales price) and what you can expect to net from the sale of your home after expenses.
Here is a list of the Top Five Reasons to Consider Selling Your Home in 2020!
1. Mortgage interest rates are at record lows.
Mortgage rates are still near their all time lows and this is stimulating demand. Because most buyers finance their home purchase, COST is just as, if not more important than PRICE. A home’s COST is dramatically impacted by mortgage interest rates and this combined with reduced home values has pushed home affordability to some of the highest levels ever seen (despite the rise in home values)! If and when mortgage interest rates begin to rise, the cost of ownership in the form of the monthly mortgage payment will rise dramatically. And if you think no problem I’ll just rent, realize that rents are indirectly tied to mortgage interest rates and as these rates rises and it costs more to finance a home, landlords will take advantage of this by increasing rents (to be more inline with the cost of a mortgage, and to increase their profits).
2. If you are moving up, you can save thousands.
If your goal is to sell your current house and move up to a larger more expensive home, DO IT NOW! While home prices are generally up across the board, appreciation has been strongest in the lower, start home tier of the market, that is homes priced under $300K. A lack of new construction in this tier of the market, has created an imbalance in supply driving up values of these start homes.
At the same time, inventory levels of luxury homes in most parts of Central Ohio sales tend to be balanced or elevated, giving move up and luxury buyers more options and more room to negotiate (this is partially due to a 2017 change in Federal Tax Policy which caps the federal deduction for state and local taxes at $10,000, a law which expires in 2025 but which is presently under vote to be repealed). Thus in the current market, move up buyers stand to benefit not only on the sale of their current home (capturing the above average rates of return experienced in this price tier), but also to negotiate from a position of strength on their purchase (in most markets in the higher price tiers, however, their are parts of Central Ohio in which inventories of luxury homes are low or in balance and prices remain strong).
3. We’re experiencing a housing shortage.
Central Ohio saw 29,408 single-family and condominium home sales in 2019, up 9.3% from the previous year according to the Columbus Board of REATORS®. This marks the highest number of residential home sales on record, a number set the year prior in 2018. The current inventory of homes for sale in central Ohio remains at historic lows (4,738). A shortage of homes generally means prices rise. The average sale price of a home sold in central Ohio in 2019 was $241,810, which is 6.0% higher than last year.
The months supply of inventory during January was 1.7, which is 10.5% lower than December. The months supply is calculated by taking the amount of inventory divided by average monthly sales over the last 12 months. In other words, if no more homes were added to the market, it would take about 1.7 months to sell all of the homes and condos currently for sale in central Ohio.
During the month of January, homes spent an average of 33 days on the market, which is 8 days shorter than the same month last year.
4. You beat the rush of inventory that is coming in the Spring.
Every year there is an increase of inventory which comes to market from April through June as homeowners put their houses up for sale in preparation for the spring market. For illustration purposes here are the historical numbers for 2019.
Month – Total Listings – Listings Added – AVG Sales Price
•January – 3,818 – 2,181 – $208,512
•February – 3,613 – 2,249 – $220,694
•March – 3,626 – 3,228 – $232,169
•April – 3,883 – 3,711 – $242,063
•May – 4,,467 – 4,397 – $253,531
•June – 4,784 – 3,965 – $262,344
•July – 5,009 – 3,868 – $251,936
•August – 5,187 – 3,690 – $247,567
•September – 3,295 – 3,295 – $239,564
•October – 5,254 – 3,285 – $239,729
•November – 4,738 – 2,163 – $233,592
You should also consider that the most desirable homes and those that are best prepared for market tend to be listed in the Spring. These sellers tend to strategically plan the sale of their homes, taking great care to prepare their home’s for market during the late fall and winter, before preparing the landscaping in early spring just before listing their homes. Not only will you not won’t have to worry about this increasing competition if you sell now, but you won’t have to compete with homes that have been best prepared for market.
5. Home sellers who list in the Winter tend to be motivated which could spell savings on your replacement home.
If you’re both a buyer and a seller, listing in the winter might mean fewer buyers (depending on what price point your home is in), however, it could result in significant savings on the price you pay for your replacement home. Many homeowners who list their home in the winter are motivated sellers looking to sell because of a need to do so. This can be the result of a job relocation, divorce, job loss, financial problems, etc. Buyers tend to face less competition in the winter especially on larger family sized homes, as families largely attempt to buy and move during the spring and early summer, this in an effort to avoid displacing children in the middle of the school year. Thus buyer’s tend to have more leverage in the winter months, especially buyers of larger move up and luxury properties.
If you are looking to sell in 2020, there may not be a more opportune time than now. Low mortgage interest rates, a large pool of serious buyers, and great move-up deals creates the perfect selling situation. Don’t miss it!
There are many important issues that come into play when deciding to sell your home. My Team and I can help you to determine if now is the best time for you!
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley 43209Columbus 43201 43206 43214 43215Delaware 43015 Downtown Dublin 43016 43017Gahanna 43219 43230Grandview Heights 43212Galena 43021Hilliard 43026Lewis Center 43035New Albany 43054Pickeringto, 43147 Polaris Powell 43065Upper Arlington 43220 43221Westerville 43081 43082Worthington 43235