Many homeowners have spent years on the sidelines while waiting for the market to recover. Is this the time that they have been waiting for? Yes, this is the opportune time to sell in Beverly Hills.
Supply and Demand
We’ve seen low inventory in many housing markets, and there are areas where this continues to be the case. However, inventory is expected to rise as more and more homeowners are seeing their equity increase.
The National Association of Realtors (NAR) is showing double digit percent increases in year-over-year sales, and buyers are ready with qualifying credit to purchase homes.
As the housing crisis becomes part of our past, we are seeing new construction on the rise. As more and more builders begin new home construction, they are demonstrating their faith in an improving real estate market. This will result in competition to sellers and buyers who will see new construction as an alternative to existing dwellings, making now a great time to sell before the influx of new construction hits the market.
Interest Rates Are On the Rise
Rising interest rates affect sellers in two ways.
1) Interest rates remain low, and buyers are still motivated to purchase.
2) If sellers plan to purchase a new home after selling, they will benefit from today’s interest rates.
Fannie Mae, Freddie Mac, NAR, and The Mortgage Bankers Association all speak in unison with respect to their projection that interest rates will be up by almost a full percentage point within the next year.
Summing It Up
Supply and demand, low inventory, interest rates, and new construction all point to one conclusion. If you have been sitting on the fence waiting for things to move in a positive direction, now is the time to sell.