2010 has come to an end and in almost all Michigan real estate markets we have witnessed small gains in the number of homes sold as well as the average sale price. The downward trends that occurred in 2008 and 2009 are hopefully gone for the future and the local, state and national economy are slowly on the rebound. This all means if you have been on the sidelines waiting for the right time to enter the home selling market, 2011 could be your year!
5 Reasons why 2011 is the year to sell:
1. You have less ‘discounted’ inventory with which to compete. This year, sellers of non-distressed properties have been given an early holiday present. With banks trying to rectify their foreclosure procedures, there has been a large supply of discounted properties removed from competition. No one knows how long it will take banks to return to the normal flow of foreclosed properties to the market. However, until they do, every homeowner has a better chance of selling their property.
2. During the winter months, the buyers are serious. We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are either staying warm (in the North) or just busy with other priorities. The home buyers left in the market are serious and are more apt to buy. Less showings – but to more motivated purchasers.
3. Interest rates have spiked up. Rates have jumped over 1/2 point in the last several weeks. The short term result of increasing rates is a surge of buyers jumping off the fence to purchase in fear that rates may continue climbing upward. This is a short window of opportunity. If rates fall again, buyers will jump back on the fence. If rates continue to rise, it limits the number of buyers who can qualify at each price point. Now is the best time to sell your house.
4. You beat the rush of inventory that is coming next year. Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. Here is the number of listings available for sale in 2010.
§ January – 3,277,000
§ February – 3,531,000
§ March – 3,626,000
§ April – 4,029,000
We believe there is a pent-up selling demand (homeowners who have held off selling over the last year) that will lead to an increase in these numbers this spring. You won’t have to worry about this increasing competition if you sell now.