Top 5 Reason to Sell your Bay Area Home this Winter!
You may think that spring and summer are the best times of the year to list your home. However, winter may actually be as good a time as any to list and sell. Bay Area is experiencing a full-blown seller’s market right now. Demand is up and inventory is down! When thinking about listing your home this winter, consider these 5 reasons!
1. BUYER DEMAND IS STRONG
Buyers are ready, willing and able to purchase… and are in the market right now! Multiple buyers are competing with each other everyday. Winter home buyers are less likely to be browsing, since many have been actively searching for properties since spring. While many buyers drop out of the market in the winter months, you may end up selling to that dedicated buyer who refused to give up! Many buyers are frustrated with the bidding wars that occur in the spring, summer or fall and are more ready than ever to move into their new home! Additionally, companies often relocate or transfer employees during the beginning of the year, so there frequently are motivated new home buyers that need to buy quickly since they are anxious to get settled in their new community.
2. LOW INVENTORY MAKES YOUR HOME STAND OUT!
Fewer properties on the market mean it’s easier for your home to stand out. If you’re one of only a few houses on the market in the neighborhood, then your house will undoubtedly receive more attention! Housing inventory in Bay Area remains very low. This means that there are not enough homes for sale to satisfy the number of buyers in the market. According to BrokerMetrics, November listing inventory is down 13.6% from November 2016. However, additional inventory could be coming to the market soon in spring and summer which are traditionally the months that homeowners in Bay Area will put their homes on the market. By listing your home now while inventory is extremely low, you’ll face less competition and your home will stand out more to those motivated buyers.
3. HOME VALUES IN SAN RAFAEL HAVE RISEN OVER THE PAST YEAR
Over the past year the median home value in Bay Area has risen and Days on Market (DOM) has declined.
4. MORTGAGE RATES ARE STILL LOW
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Mortgage rates for new purchases have consistently been under 4.25% since July, but that could change in 2018. Mortgage rates usually increase after winter which may slow the demand down. The serious buyers looking at homes in the winter months will most likely have taken the necessary steps to get pre-approved for their mortgage before making a move on your home! If you are not currently looking to sell, but thinking about refinancing, now is a great time to do it. The Mortgage Banker’s Association recently stated that refi applications are up 9% due to low rates bolstering refinance volumes.
5. RECENT TAX CUTS TO HOMEOWNER TAX BREAKS COULD DETER BUYERS
Recent changes to tax policy could have potentially large effects on both buyers and existing homeowners. The market remains strong now but policies in the new tax bill could deter buyers given the reduced limit on the deductibility of mortgage interest and the fact that mortgage deduction will only apply to primary residence purchases, For some homebuyers, they may decide to stay in their current residence or make improvements to their current home, taking them out of the pool of potential buyers.
If you are thinking about selling or buying a home this winter (or anytime in 2018), we'd welcome the opportunity to be of assistance.