Why Fall 2015 is the time to sell your home
September 21st, 2015
With Fall a mere two days away, it’s easy to get wrapped up in the busy schedule of a new school year. With football season already heating up and the leaves changing color, there is a lot to be excited about this season. But, in terms of real estate, fall has the potential of being not so great for those looking to sell their home.
It is true that buying and selling tends to slow down as school picks up again. And, as we head into winter, less and less homes are being put on the market. This decision to wait until late winter/early spring to dive into the buying and selling process is understandable and popular for most. Properties – especially houses with gardens – present better outside of winter; and, many prospective buyers prefer to house hunt in warmer weather.
While there is reason to wait until spring, it’s unfair to close your mind to property in the fall and winter seasons, especially if you are thinking of selling in the spring. Wisconsin has had one of the strongest years since before the recession for spring and summer home sales with existing home sales increasing 16.9 percent in July 2015 relative to July 2014. Dan Kruse, WRA board chairman says in the July 2015 Home Sales Report:
“This is the strongest spring and early summer sales volume we’ve seen since before the recession…We’re definitely on pace for a very strong 2015 if sales continue to grow at this pace.”
With rising home sales comes major pressure on inventories, especially in metropolitan areas of Wisconsin like Madison. The supply of available housing continues to tighten with inventory down 14 percent to 8.7 months statewide, and even less in urban areas at 6.5 months. It’s important for buyers to consider what the market may look like in a matter of one year and be prepared to move quickly when an opportunity presents itself during these even lower inventory months.
Another factor that will play a major role in the real estate market is the Federal Reserve’s decision to raise interest rates this year and continue to do so throughout next year. While this hike in interest rates in the next month or so is expected to be a non-issue to the real estate market this year, the fed fund rate will continue to rise over the next two years, such that by mid-term elections in 2018, the fed fund rate will have reached 2.5 percent or higher. Because of this, the 30-year fixed mortgage rate may hit 4.5 percent by the end of 2015, and likely rise to 5.5 or 6.0 percent in two or three years.
So, what do all of these numbers and real estate jargon mean in plain english? The current low interest rates and inventory levels make the upcoming fall and winter seasons the perfect time to sell your home. And, while it may seem daunting that interest and mortgage rates are on the rise, it is actually a good sign for the economy, and an even better sign for the future of the housing market.
The fall season can be busy, but if you are thinking of putting your house on the market we highly encourage you to reach out to our team as soon as possible so we can put things in place to list your home. We know what to do to make a house or condo stand out in any market, so let Sprinkman Real Estate help guide you through the selling process to make it as smooth as possible. There’s no reason to wait!