While the thought of selling your Lafayette Indiana home during the winter months may dampen your holiday spirit, the season does have its advantages: winter buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. If you are debating listing your home for sale within the next 6 months, keep in mind that the spring is when most other homeowners will decide to list their homes as well and listing your home this winter will ensure that you have the best exposure.
Here are the reasons to sell your Lafayette Indiana home this winter and what’s predicted for the housing market in 2020…
1. Demand Due To Low Housing Supply
Inventory is still under the 6-month supply needed for a normal housing market. This means in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market.
Historically, a homeowner would stay an average of six years in his or her home. Since 2011, that number has hovered between nine and ten years. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.
Many homeowners were reluctant to list their homes over the last couple of years, for fear they would not find a home to move into. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you decide to sell.
A normal market is considered to have a 6-7 month supply of inventory to be considered balanced. We have seen and experienced in Tippecanoe County that a shortage of inventory tends to keep home prices strong and has resulted in multiple offers and bidding wars. Tight inventory is a main reason the ball is still in the sellers’ court. The inventory of existing homes for sale remains below the 6 months needed for a normal market and is now at a 2.35 month supply.
(per IRMLS – Lafayette Board of Realtors, November 2019)
2. Mortgage Interest Rates Hold Steady But For How Long:
While mortgage rates remain low, experts predict more buyers will enter the market in the coming months due to anticipated rising interest rates in the future. This could prompt buyers to get off the fence and start their house hunt sooner than later in order to take advantage of lower mortgage rates. From 1996 to 2006, the average interest rate for a 30-year fixed rate loan was approximately 6.3%.
Mortgage rates didn’t budge much over the last week amid mixed signals as to the economy’s strength as the holiday season kicked into full drive.
The 30-year fixed-rate mortgage averaged 3.68% during the week ending Dec. 5, unchanged from the previous week, Freddie Mac FMCC, +5.16% reported Thursday.
Compared to a year ago, mortgage rates were more than a full percentage point lower. During this same week last year, the 30-year fixed-rate mortgage averaged 4.75%.
The impact of rising rates is likely to be greater for home values in the higher end of the price range. Lower-priced homes are in short supply and high demand across most areas, so price growth is likely to stay strong even with the increase in borrowing costs.
3. Increasing Rents:
There are great advantages to owning a home, yet many people continue to rent. The financial benefits are just some of the reasons why homeownership has been a part of the long-standing American dream. Rising rental prices could motivate tenants to make the leap into home ownership. Rent prices have risen 15% nationwide in the past five years in 70 metro areas across the U.S. and income growth hasn’t kept up, according to NAR. Rental prices are expected to remain elevated in 2020. Renting can be very expensive and can make it difficult to save for a down payment. When renter’s see an increase in rent, it may help their decision to buy a home.
4. Price Increase:
According to CoreLogic, prices are projected to appreciate by 5.6% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and in your mortgage) if you wait.
Bottom Line:
Listing your house for sale in the winter will allow you to capitalize on the shortage of homes for sale in the Lafayette and West Lafayette market, which will translate into a better pricing situation. With inventory levels at their lowest mark in over 10 years, listing your home for sale now will give you the most exposure to buyers and allow you to get the best price for your home.
For more questions or for a specific update on YOUR neighborhood in the Lafayette, Indiana area – call The Romanski Group at (765) 293.9200 for a FREE Seller Consultation. Using an experienced team is the way to go to get your home SOLD! Don’t you deserve the BEST Realtor in the Lafayette Indiana area?!
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