Homes are selling faster than new ones can come to market to replace them. The result-inventory of available homes for sale is down 31% from the lows of a year ago.
Who should consider selling now?
- Those who don’t commute daily into the Seattle-Eastside metro region for work or leisure. Selling in the core metro neighborhoods of Seattle and the Eastside at the highest prices of record and purchasing in a more affordable perimeter city could allow homeowners to pocket a sizable difference.
- Those who plan to move in the next several years and will depend on a mortgage to finance their next home. Locking in today’s low interest rates for the long haul with provide leverage against rising costs in the future. Given that each 1% increase in interest rates lowers your home buying power by 10%, this is an important consideration for those thinking of a future move. Sure, it’s going to be stressful to sell before you buy in this non-contingent seller’s market, but that is mitigated by the fact that sellers today can easily negotiate extended closings and rent-backs to help streamline the process. And, its far better than the alternative of being trapped in a current home that no longer works for you while waiting for rates to come back down.
- Those who have under-utilized property where the land is worth more than the structure. Builders are paying ridiculous prices for in-fill lots with tear-down homes as the supply of build-able raw land has all but diminished. As construction costs rise, causing finished home prices to increase above their affordability targets, this cycle of land purchasing will slow and potential building lots may lose value until the next economic building cycle begins.
East Lk Sammamish
© Copyright 2016, Windermere Real Estate/Mercer Island. Statistics provided by the Northwest Multiple Listing service and deemed accurate but not guaranteed.