Why Now May Be the Best Time to Sell

We know you have been thinking about Selling, Wholesaling or doing a Fix and Flip, but weren’t sure when to do it, there may not be a better time than now.

To be sure, the decision to act greatly depends on your own personal circumstances. However, several factors have combined to make this a good time to think about taking action. The idea of jumping into the market, especially if you have been cautiously sitting on the sidelines, is now!

Over the past few years, the inventory of homes for sale has steadily shrunken, even as the demand from buyers has grown. Nationwide, total SFR inventory stands at just under 5 months’ supply. However, in some of our local markets, available inventory is even lower. Putting this into perspective, a balanced market should have approximately six to eight months supply. The time to use REIAComps to quickly and easily access the local markets around Hotlanta is frankly sizzling. 

Real estate has always been a business of supply and demand. As a result of the limited supply, coupled with continued buyer demand, sellers who market their deals now may be in luck. In our market we’ve seen home price increases and multiple offers on many homes, some even above list price.

I can tell you with reasonable surety, the imbalance in supply and demand is not likely to change in the coming months for most major market areas, especially Tampa. For now, the 2016 housing market is forecasted to be mainly a seller’s market, filled with increasing home prices, relatively low inventory, and solid competition between buyers.

Also, while mortgage interest rates remain close to historic lows, some industry experts are warning that interest rates will gradually begin to climb. In December 2015, the Federal Reserve raised its key interest rate for the first time in nearly a decade and the Fed has signaled it plans to raise rates yet again this year.

The prospect of higher interest rates could actually work to a seller’s advantage in the short term, at least. You see, the increased rates prompt would be buyers to get into the market before rates go up even further. When interest rates are thought to be escalating, we see a wave of activity with people getting off the sidelines.

Do realize, homebuyers may want to minimize competition when they hunt for a home in a tight market, but for many sellers, the more buyers the better. According to most Realtor analysis of sales, the prime home-buying season begins in April and reaches its peak in June.

Investors like us, who market our deals during the prime spring and summer months benefit from a larger population of buyers and potential bidding wars, which often result in higher prices and faster closings.

Know too, home prices have certainly been rising, but rents are rising even faster in major market cities that are not impacted by rent-control laws. These factors motivate tenants to consider home ownership. According to RentOMeter.com, rent prices have risen 15% nationwide in the past five years in 70 metro areas across the U.S.

Every time there’s an increase, it triggers the decision processes on whether renters should go into the market and buy. Getting more buyers into the market, especially first-timer homebuyers, can help us as sellers feel more comfortable about our prospects.

While this may be a good time to sell your home or an investment property, the ultimate decision doesn’t have to a complicated one. You will undoubtedly have lots of questions such as; how much your deal might be worth, how best to market it, etc. These are easily determined using your REIAComps to review the actual sales around the homes in your portfolio or the deal you are eyeing to make some money with.

Always use REIAComps to help you determine the best acquisition and ARV for every deal you look at. Don’t for one moment let someone tell you the value of a deal. Let REIAComps show you for yourself.