04/26/2018
Friends and Clients —
Each year, spring & summer 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.
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 Sacramento 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.
While this is a four-year high, it is still near historic lows and makes mortgages affordable to would-be buyers.
What does all of this mean for you as a home seller?
First off, 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.
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, state and local tax deductions, which could combine with higher mortgage rates to push more buyers out of the market.
To sum up, if you have been considering selling your home, consider selling now. The current market is very favorable, but it won’t last forever.
Here's how to get started. You can get a quick but accurate estimate of the current value of your home, based on recent Sacramento sales:
Enter your street address here to find out what your home is worth
Or you can call me anytime @916-212-0123 Please feel free to call. Text or email with any questions. Kulwinder Kaur K.D. [email protected]