If you are thinking about selling your home this Spring is looking like an ideal opportunity. You will want to balance getting the most of out of the sale of your home and making a good decision when you buy your next. We think you will be able to get the best of both worlds in Spring of 2022 and here’s why:
According to some of the housing data experts, the most recent study says that nationally, the average homeowner has $55,300 in equity added to their homes in the past YEAR, that is right the past YEAR. This kind of equity can fuel your move. It may be just what you need to cover a large amount of your down payment, if not all of it. It also opens doors to different kinds of lending. For example, we have clients applying for Bridge Loans so that they don’t have to wait to sell their homes to use their equity for down payments. The market moves so fast that the risk is smaller on the sale side. If you want to learn more about this strategy please click here to chat.
In Denver Metro we ended the month of February 2022 with nearly 1300 homes and or condos available for sale. These record setting numbers put you, the Seller, in the driver’s seat. The time it takes to sell a home has significantly decreased and the options that Buyer’s offers include have not been seen before. Those offers often include non-returnable earnest money and up to 60 days of post occupancy, among other things. What we hear most often from Seller’s is, “If I sell my home where would I go?” We think the answer lies in the type of loan you get (if you need one) and what we can negotiate with the Buyer that is purchasing your home. Seller’s would be surprised at the solutions available to them and hiring a seasoned professional can help navigate this for you!
True, mortgage rates are on the move upward. In the 2000’s the average mortgage rate was 6.27% and in the 90’s it was as high as 8.20%. Right now, rates are still lower (3.99% conventional, single family home) than they have been in recent history. It is predicted with the uncertainty in our world right now that there will be pressure on rates not to rise as fast, but they will still rise over the next year. What that means for you, is that less people will be able to afford your home when you sell yours and you will be able to afford less as well when you buy. If you are ready to move up or downsize you might want to get that move going sooner than later.
Home prices have been rocketing into space over the past couple of years beginning in 2019. The supply and demand formula for a balanced market is off. We would need 6 months of inventory available to see an even-steven market. We are in weeks of available inventory here in Denver. For now, it looks like that will continue locally for the couple of months before we see some slowing. I don’t mean a slowing that create’s a Buyer’s market I just mean maybe we start to see a month or two of inventory at a time. Buyer demand would have to fall off the face of the earth for it correct completely. Use your current home equity to help get you into a home that fits your current needs and watch your equity continue to grow as the imbalance of supply and demand continues. We can help you see if now is the right time for you!
If you want to take advantage of all this market has to offer we think this Spring will be the right time! As the stock and energy markets continue to be volatile, Real Estate still offers an opportunity to invest in your own living situation or for your portfolio! Your Pot of Gold is waiting!