Ah, the white picket fence. Commonly used to encapsulate the American Dream of home ownership. Kids playing in the front yard, parents embracing, you know…the whole big thing.
Lately though I’ve been noticing the fence more as a place to sit on when it comes to real estate decision making. I get it. It has been an incredible run of low interest rates and rising home values and we’ve deserved it after some trying times almost a decade ago. With some things changing in recent months it has made it a little more difficult for people to know what is best for them and up on the fence they go.
Let’s be honest, a fence isn’t a very comfortable place to sit…especially a white picket one. Let’s talk about what’s going on in the market right now and help you get your feet back on the ground and moving in the direction you want to go.
What a start to 2017 eh? Starting to see some truths come to light from my last blog post predicting what 2017 will bring ring true with the first quarter almost behind us. If you didn’t check out that post, Magic 8 Ball: A New Year Prospectus, check it out here.
So, what do we know so far?
- Inventory is low
- Interest rates are rising
- Getting harder to qualify for a loan
- Very competitive, multiple offer situations
What should this tell you? The time to strike is here.
Sellers, time to capitalize.
Chances are if you bought your property pre-2008 or post-2008 you are sitting on a decent chunk of equity to cash in on. If you’re happy where you are at and don’t need to upsize or downsize in the next 7-10 years then feel free to stay put. However, if you see your living situation changing in that time period this would be the ideal time to cash in on your investment and leverage that equity on your next property.
Buyers, time to get in while the gettin’ is good.
With interest rates climbing the amount of house you can afford dwindles. Every tick of percent up jacks up your monthly payment and potentially prices you out of the type of home you really want. This is never fun news for me to have to deliver. With prices potentially settling a bit and interest rates still at historic lows, this is a great time to get in and get the house you really want rather than settling for something that doesn’t hit all your wants and needs later on.
Fences are for bordering property, not sitting. I’m always here to help.