The housing market supply is still tight. So if you haven’t given much thought to listing your home this year, you might want to rethink it. According to a recent survey, 31% of people feel that 2018 is a better year to sell your Tracy house than 2017.
Regardless of how enthusiastic people seem, only 6% of people are actually planning on selling. This low volume of homes for sale is expected to drive prices higher for 2018. Too few homes are on the market to fill the demand and that means prices are going up.
If selling has been on your mind lately, now could be the time to jump in. Here are some of the biggest reasons why selling this year could be better than you think.
Low inventory over the last few years have left Tracy home buyers frustrated. This is leading to home buyers getting an early start to try to beat out the competition this year. While buyers typically start looking in the spring, this year they have already been hunting for the perfect house for weeks. Typically March-June is the peak time for home buying but buyers may extend their buying season.
Homes in the past few years have been selling at asking price or above but experts kow that won’t always be the case. Builders are expected to start on more entry level homes this year to fill the demand so you may have more competition to sell if you wait too long.
Low interest rates help the Tracy buyer and seller make a transaction. While it looks like rates are staying relatively low this year, the trend isn’t expected to last much longer. Rates are expected to rise up to 5% by 2019, an increase that doesn’t seem like much but can really add significant costs to your monthly mortgage payment.
As interest rates climb, you are less likely to see bidding wars and tough competitions because there will just be less buyers able to afford to buy a Tracy house. Interest rates rising are a positive sign for the economy but it hurts buyer’s wallets.
Low interest rates are pushing a lot of potential buyers into making offers. Once those go away, a portion of buyers will sit tight until they have a bigger down payment or more money saved.
If you’re looking to sell, now is the time.
The Tax Cuts and Jobs Act was passed at the end of 2017 and it means a few big changes related to property taxes for 2018. It limits the amount of mortgage interest rates you are allowed to deduct from your taxes. These won’t affect every homeowner but if it will put you in a position to struggle next year, the time to move is now. Over time, this could affect the demand for higher end homes.
It looks like homeowners are focused on renovations and not selling. But if you have a project you want to do, make sure you are doing it to make yourself happy and not to get a return on your investment.
If you are selling in a competitive Tracy market you might not need to tackle all of those projects. Buyers in this market are more likely to not mind an outdated kitchen since inventory is so low.
While they may be willing to overlook a dated kitchen, it’s the clutter, deferred maintenance and lack of curb appeal that can still kill a deal. If you do decide put your house on the Tracy market, take the process seriously, and you’re likely to see ample interest.