You may have noticed that the real estate market has gone haywire during this last year! Housing inventory is at a record low, as buyers continue to outnumber sellers, forcing prices upward to meet demand!
If you are considering selling your property but are still hesitating whether to put it on the market now, my urgent message to you is: Now is the time to sell! You may miss the best market in decades if you wait.
Here are a few good reasons you should jump on this unprecedented opportunity:
1. The Market is Hot, Hot, Hot!
Home sellers have a formidable negotiating advantage because demand outweighs supply. Relatively few owners are putting their homes on the market. The supply of homes for sale nationwide is much lower than the six-month supply that marks equilibrium between sellers and buyers.
Sellers call the shots, and the proof is in the pricing. Compared to last year, the median sales price for residential properties on Hawaii Island in May went up 35.14%*, condominiums - 37.62%*, and vacant land - 51%*. While we are on the numbers, the sales volume increased by 299.82%* for residential properties, 329.66%* for condominiums, and 447.78%* for vacant land. That’s an opportunity to increase your return on investment and bring in some profits. Use them to boost your retirement savings or buy a larger move-up property instead. Either way, you win.
The scant supply of homes benefits sellers in ways besides high prices. Multiple offers are routine, which means homes sell fast, and sellers need not fix them up. Even when sellers do nothing to fix up the house, the winning bidders feel relief instead of buyer's remorse. They just don't want to miss out.
2. The interest rates are still very low
As of the time of writing this blog, the average interest rate is 2.864% for a 30-year, fixed-rate mortgage, which is low. Interest rates are expected to rise as 2021 wears on – realtor.com predicts mortgage interest rates will reach 3.4% by the end of the year. Federal Reserve has already hinted that rate increases might be coming soon, and even though they should remain low compared to historical averages, the increase will automatically disqualify a certain number of buyers not able to afford a higher mortgage payment. And fewer buyers = fewer offers, easy math!
3. I have buyers
With over 40 years of experience in the real estate business and hundreds of satisfied clients, I have qualified buyers on standby waiting for the right opportunity. If you have thoughts about downsizing, rightsizing, or relocating to be closer to your grandchildren, now is the time to make your move. I can help you sell your property fast and at the right price and will walk you seamlessly through the whole process. I can also assist you in finding a new home if that is something you are looking for.
Ready to make your move? Let's talk! Contact me.
*Data according to First American Title
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