Great Time To Buy Or Sell

Great time to buy a home?

For buyers, the window of opportunity has not closed despite rising mortgage interest rates and average selling prices. The historically low interest rates over the past couple of years were achieved because of the Fed's aggressive bond purchasing program. When they announced they would begin tapering off their purchases, rates rose about a percentage point in anticipation of that happening. Recently the Fed announced it would continue the pace of bond purchasing until the economy was stronger and rates have actually decreased slightly. Looking ahead however, all of the industry pundits, investors, and REALTOR and mortgage banking associations project interest rate above 5% at this time next year. 

Even though average selling prices of homes in Greater Lansing have risen over 9% so far this year, prices are not even approaching the peak years of 2005-2006 and there is still considerable room for appreciation.

Taking the current historically low interest rates and average selling prices into account, affordability is still very good and buyers have not missed an opportunity to purchase a home that we have not seen in decades.

Great time to sell your home?

Sellers should consider acting now as well. Since affordability is still good, buyer activity remains high and they're serious. Rising interest could change this pool of potential buyers. Inventory that had shrunk earlier in the year is beginning to rise putting more competitive properties on the market. Builders are working hard to grow their product putting more new glitzy competition on the market.

If you are a home owner is thinking about selling your home, the costs of waiting need to be evaluated. Is the chance of making a few dollars more on a sale worth not  moving on with their life. When the seller is ‘ready’ will the demand be there? If the seller is moving up in home size or quality of neighborhood , will the house of their dreams still be affordable?

The window for both buyers and sellers is still open but we can see a time when it will begin closing. Acting now may be the right move.