What a Seller’s Market Means For You

In our recent newsletter and blog, we shared information about housing market trends. The numbers, including an increase of home sales and a decrease in supply, indicate that 2017 is and will be a seller’s market.

In a seller’s market, demand exceeds supply. This drives prices higher, giving sellers the upper hand. It can even result in bidding wars, causing it to be more difficult to purchase a home. The big question is, what does this mean for you? That depends, but it could mean that it is time to act, depending upon the situation. Let’s explore the possibilities.

  • It’s time to sell. There is no single factor that can determine whether now is the time to sell, but for those who have been on the fence about selling, it’s time to seriously consider placing a home on the market. With home values high, sellers may make a considerable profit, which can then be used toward the purchase of a new home that better suits their needs. Be prepared for things to move quickly, though. Consider whether a temporary residence might be needed and create a plan. Consult with a Realtor® and a mortgage expert, both lend to making the process of upsizing or downsizing go smoothly.
  • It’s time to buy. If the time is right to buy a home due to a job or family situation, don’t let a seller’s market prevent it. If the goal is to sell and then purchase a new home quickly, it is possible. The key is to be prepared. Know the area and what to expect when looking. Have a strong real estate professional help with the search and the negotiations. Begin the loan process, and acquire preapproval before looking at houses. Most sellers want to work with serious buyers who are prepared; proper preparation will give sellers an advantage should a bidding war begin.
  • It’s time to refinance. There are several reasons why an individual would refinance. For some, a better rate than the original loan will lower payments or shorten the term for a similar payment. Some wish to drop private mortgage insurance as equity has grown. Others may use that equity to pay other debts. As house prices rise, a home could appraise for more, making it the optimal time to refinance. There are many factors that can influence this, so definitely speak with a mortgage expert.

If one of these situations applies to you, the experts at Paramount Mortgage Company would be happy to help determine the right course of action to meet your needs. Contact us today.