Change
affects all of us in every aspect of our lives. Whether it is our kids, our
finances or our homes, we continually exist in a state of flux. The real estate
market is no different. Since the collapse of 2008 and the Great Recession of
2009, we have seen home prices plummet, then recover and now hit record highs
in our market area. It has taken years, but the average single family home
value in Madison has fully rebounded to a record $254,593.
The level of home inventory is no exemption to the forces of change. From a
market high of approximately 5300 Dane County homes for sale in October of
2008, we now sit with only 1300 available currently. It's no wonder home buyers
are having a hard time. So why is it that fewer owners are putting their homes
on the market for sale? Here are the top 3 reasons I can identify:
1. "With so little inventory, I'll be left homeless once I sell my
home."
If you need to make a change, this reason should not deter you. There are a couple
of ways around this problem such as making the sale of your home
contingent on you finding a suitable home. Leasing your home back from the
buyer on flexible terms is another option - this allows you to compete for your
next home with cash in your pocket.
2. "I don't want to give up my low interest rate loan."
Interest rates are still historically low, perhaps not as low as the records
set a couple years ago, but very close, with the Federal Reserve continuing to
threaten more increases in the near future. If you know that you will be making
a change in the future, your best move is to do it now before markets return to
a more balanced level, which will likely mean interest rates 50% - 100% higher
than current levels. A quick call to your mortgage lender will help you with
the math and forecasting in this area. If you need a reference, let me know. I have several reputable lenders who are ready to help!
3. "The market is appreciating so quickly, why would I sell?"
If you plan on moving into a less expensive home in the future, it probably
makes sense to stay in your current home; however, if you plan on making a move
up in price, you would be better off taking advantage of the lower interest
rates and lower prices now. You will save tens of thousands of dollars in
interest in the future.
Recent reports have indicated that home prices in our area are now at record
levels. Especially if your next move is to an apartment or senior living
community, now is your time to take advantage of market conditions. I am ready, willing and able to help you make your smartest move now
and would be honored to be your Realtor of choice.
