The real estate industry is really booming this year--with lots of foreign investors willing to put their money to property developments and with homebuilders building more single-family homes. But the real estate industry doesn't always go straight. It may experience sudden drops or highs, depending on the market. So, if you are planning to sell your home, now may be the best time.
Here are the reasons why you should consider selling your home now.
1. Mortgage rates are getting higher. Federal Reserve chief Janet Yellen said last month that mortgage rates "will move higher later this year after seven years of central bank easing that helped the battered real estate market bounce back following the subprime lending crisis." If the mortgage rate is higher, potential buyers are going to think twice before buying your house. It is better to put your house on listings now that the mortgage rate is still tolerable rather than later this year, in which case, the mortgage will be higher.
2. Take advantage of the demand. The demand for new homes reached an all-time high in the United States. If the demand is high but there is not enough supply, chances are the prices will surge up. U.S. Homebuilders are doing their best effort to cope with the demand but the families searching for houses to buy are just too much. Prices of houses for sale in South Florida have been steadily rising since the past few months, due to lack of available homes for sale.
3. Consider a Trade Down. You should consider the place you will live before you sell your house. If you are living in a spacious home with a high mortgage, it is advised that you trade down your house for a smaller one or just rent. As stated above, mortgage will still rise, which means that you should probably think of your spending budget for the year.
