Selling in Today’s Market

How does it make sense to sell in today’s market?

If you’re thinking about downsizing, this may be the best market for you to make your move. Sound unbelievable? Here’s why:

When you are downiszing, the focus is on the future. Never before have the buying opportunites been so good. Interest is in the 4% range these days…a historic low. Inventory is still high, meaning there isa great selection of homes in good areas and very motivated sellers.

Yes, you will not sell your existing house for as much as you could have 2 years ago. But, you will be buying your next house at the same discount too. Heres where the future comes in. If you sell a larger home and buy a smaller home, or a home in an area that is increasing in popularity, you are going along with the larger trend of the market, the demand for smaller homes in ultra convenient locations. When the market recovers, these homes will be in much greater demand and appreciate faster than your older and larger home, helping you to gain your equity back faster than if you stayed put.

Recently we have helped clients sell sububan homes and move into smaller homes, townhouses or condos in thriving urban areas. It’s true, they gave up paper equity they had before, but because they had owned for 10 or more years they still had plenty of equity to work with. And they are happy to be better positioned for a recovery.

Another way to look at is to pretend that it’s 2005 again. The market is at those same price levels in many areas. If you have owned long term, did you have equity in 2005? Well, you still have that equity. And, would you have a problem buying at 2005 prices, the prices we had 2 years before the top of the market? So, it is like it’s 2005 again, but even better, because we now have interest rates in the mid 4% range, and a bigger inventory to choose from.

Something to consider.