Last January, Seattle had the second lowest rate of homes for sale in the country, behind only the San Francisco area. This low inventory has resulted in higher home prices and a seller’s market. In May, Seattle real estate had the highest number of bidding wars in the country; according to Redfin, 90 percent of homes on the market in Seattle ended up in bidding wars. All of this is to say that it’s advantageous, to put it mildly, to be a seller right now.
However, as the wise saying goes, this too shall pass, and later in 2018, the tides may begin to shift away from favoring home sellers. Through contacting Pickett Street (Pickett Street at (425) 502-5397 or firstname.lastname@example.org), find an agent who can help you take the leap in selling while the market is still heavily in your favor. In the meantime, here are a few reasons why it’s smart to sell your home early in 2018–i.e. today!
1. Inventory might increase in the fall.
This would be the first major inventory gain since 2015. It could mean more inventory gains and a shift away from a seller’s market in the coming years. Consequently, it’s smart to sell now, while limited listings result in desperate buyers’ willingness to pay higher prices and close quickly. The current limited inventory also means that you will have less competition from other sellers in your neighborhood.
2. Home prices may start to rise at a slower rate.
Home prices in the Seattle area are still increasing, which is good news for sellers because it means that they will most likely a good chunk of money when their property sells.
However, the rate of home prices increasing is expected to slow in 2018. Zillow data shows that home values will rise 5.4 percent in 2018, which is significantly less than the 12.3 percent home value growth in 2018. Additionally, rents are predicted to rise around 3.5 percent this year, down from 5.4 in 2017. Again, this decrease could set the tone for the market for a few years.
3. Mortgage rates might rise.
Mortgage rates are still relatively low, just under 4 percent. Lower mortgage rates tend to encourage people to buy homes, and this is good for you, the seller. However, experts say that mortgage rates could rise as high as 5 percent by the end of 2018, which means that home buyers will pay hundreds of thousands of dollars more for their mortgages. This change will most likely discourage some potential buyers.
4. Buyer confidence is up.
Consumer confidence remains relatively high and stable, with 53 percent of American households reporting that they are in good condition financially. This consumer confidence might be due to lower unemployment rates–as of November 2017, Seattle had a relatively low unemployment rate of around 4 percent. No matter the reason, consumer confidence leads to increased spending and real estate investment. Take advantage of this situation while it lasts.
5. Home buyers are looking now.
While March through June is traditionally the best time to sell your home, many buyers start looking for homes right after the new year. US News reports that the real estate information company HomeLight experienced a significant increase in traffic on its website around New Year’s Eve as potential buyers began looking at homes online.
To take advantage of the current real estate market before it changes and list your home today, get in touch with Pickett Street at (425) 502-5397 or email@example.com.