Many homeowners are wondering, “Why sell now”? If the market is getting better shouldn’t we wait? Right now is a great time to sell for many reasons. Some of the better reasons are:

• Sales prices have increased 14.5% in the past year, so you will get more for your home.
• Traditional homes sold in just 68 days for 97.7% of their original list price in June 2013.
• Interest rates are on the rise, right now they are at around 4.5%. The higher they go, the less home buyers can afford.
• Inventory is still very low but starting to increase slightly. There are 17.2% fewer homes for sale than in June 2012 but 17.4% more than in January 2013.
• School will be starting again soon and many buyers want to be moved in before the new school year starts, so they need to buy now.

If you are on the fence about selling your home, contact me for a no obligation discussion. Your home may be worth more than you think and I can help you decide if now is the right time for you to sell your home or not!

Last week mortgage rates rose to over 4% for the first time since March 2012!  The average rate for a 30 year fixed rate mortgage is 4.46%. This rise in interest rates will most likely send more buyers out into the market to get a home before rates climb even higher making the homes for sale shortage even greater. On the other hand for some buyers, they may need to adjust the price of homes they are looking at since they are becoming more expensive with higher interest rates.

The number of refinancing applications was down another 5% last week – a plunge of 40% since just back in May!  For many homeowners, a refinance just is no longer worth it if rates are 4% or more.

Why own a home? Need some good reasons to buy your own home? Take a look at this short list.

• Prices are still fairly low and so are interest rates. They say prices will increase by at least another 5% in the next year and interest rates may also rise, so get in as early as you can.
• Rent is normally a variable that is only set for a short amount of time and seems to always increase. If you buy your own home and get a fixed rate mortgage, your “rent” will be the same for the life of your mortgage.
• Rather than paying someone else for your place of residence, you are paying yourself with your mortgage payments. You can look at it as a form of savings plan as the equity builds in your home.
• Mortgage interest is still a tax deduction. If you buy soon, you get a double bonus with the low interest rate and being able to use it as a deduction.
• Paying your mortgage on time every month as well as your other bills will help get you a great credit score.

If you are on the fence about buying a home, now is the time to get off that fence and do it while homes are still a great deal!

RE/MAX CEO Margaret Kelly was interviewed on Fox News about the current real estate market in the US. She talks about why inventory is so low and when it may increase, who is buying homes now and why, what about lending standards and the interest rate and more. It is a very informative piece on the “state of the housing market”.