“Why?” you ask. Call it the perfect storm of Buyers, Money and Inventory.
- With unemployment rates falling, more young people with good jobs and steady incomes are eager to ditch the security of mom and dad’s basement and move into a home of their own. Renters previously shut out of the market and facing rising rents also see an improving economy as a good time to dip a toe in the house-hunting waters. Buyers, particularly first-timers, are back, and after years of pent-up demand, they are ready to pull the trigger when they find the right property.
- Historically low mortgage rates continue to tempt buyers. Meantime, many lenders have eased their borrowing criteria, making it possible to secure a loan. Lenders are backing mortgages with down payments as low as 3.5% and are offering conventional loans with 5% down. Here’s more good news: Borrowers with less than perfect credit histories have reason to cheer. FICO scores are now looked at more favorably than the 800 range scores would-be buyers needed during the recession.
- Low inventory persist. In the Pierce County area, inventory of homes available for sale fell below a three month supply. Typically, available inventory would be closer to six months’ worth. With so few houses on the market, sellers in many areas stand to do well if their homes are priced right.
So, if you are on the fence about selling your house, now’s the time to step off. Demand is three times stronger than it was a year ago. But this alignment of stars now favoring sellers may not last. Home prices are already cooling off and new listings hit the market every month. If you snooze, you might lose.
For more information or to sell your home in the Tacoma, Washington area email Joyce at firstname.lastname@example.org