Here are a few things to
know about the real estate market as we head into spring. It should be a great
season.
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Each year, spring is the hottest season for
real estate. However, spring 2018 looks to be an especially important time for
anyone looking to sell a home. Here are
a few facts to get you thinking:
1.
Demand continues to outstrip supply. The number of
homes on the market is near an all-time low, and listings of existing homes have plunged 8.1% over the past year.
While this means that the total number of sold homes has actually decreased,
demand continues to be strong.
2. Home
prices are still surging. Home prices are up 6.3% year over year in the last quarter for which we
have data. It's not just Morley that's doing well — areas around the country
keep posting record highs for home values.
3.
Mortgage rates are finally rising. The Fed increased
its benchmark rate several times over the past year, but this did not translate
to an immediate increase in mortgage rates. However, mortgage rates do seem to
be finally responding, and the 30-year
fixed rate is now hovering around 4.5.%. While this is a four-year high, it
is still near historical lows, and makes mortgages affordable to would-be
buyers.
Put together, what do these facts mean if you
are considering selling your home?
First
off, they mean that right now is a very good time to sell. That's because of the strong demand and the high level of current
prices. In other words, if you were to put your home on the market right now,
you could get top dollar, and you would be able to sell quickly and without
hassle.
It’s not clear how long this favorable situation will last.
Second, it's not clear how long this favorable
situation will last. As I mentioned, mortgage rates are on the rise. Currently,
that is not enough to dampen demand. But if rates continue to rise, it might drive more buyers out of the
market, eventually driving down prices and making it more difficult to sell
your home.
Another thing to consider is the effect of the
new tax plan. It's not entirely clear how it will affect the real estate
market, but odds are good it will make home buying more expensive. That's
because of a new cap on state and local tax deductions, which could combine
with higher mortgage rates to push more buyers out of the market.
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