The list of reasons to sell your house just got longer because home prices are, yet again, on the rise. March saw home prices shoot up an overall average of 4.1% above last year’s prices and an average of 5% in major metropolitan markets. In some markets, home prices are more than 10% higher than they were this time last year, and those numbers could just keep climbing. What’s more, this represents the third year in a row that house prices have risen dramatically. Since 1975, home prices have traditionally gone up only about 1% per year to account for inflation, but in recent years they’ve increased far more.
This change, which is caused by a decrease in inventory in the housing market, makes this the perfect time to sell your home. While some might worry that these steep increases indicate that we’re heading toward a home-price bubble, experts reassure us that when that increase is evaluated alongside the average increase in income and wages–and when the average amount of debt most Americans are carrying is added into the equation–there is no need to be concerned. While the price increases will likely moderate themselves sometime soon, the homes themselves should retain their value, making them reliable investments. Still, home sellers who wait too long, could very well lose their chance to maximize their profits.
The low inventory of the housing market will meet even more demand because the rental market is still out of balance. Renters are finding that, even with the rise in home prices the economical choice is still to buy, which will motivate more renters to move toward home ownership if they can possibly afford to do so. Therefore, the disparity between supply and demand will become even greater. In other words, the fact that there aren’t many homes on the market just as the demand is increasing means that those few homes that are for sale will be even more sought after.
Of course, as is the case in any fluctuating market, time is of the essence when it comes to taking advantage of low home inventory. Sellers who list their homes sooner rather than later will find that their properties are ahead of the competition. Their properties will have an opportunity to appeal to buyers before others are even on the market. In short, if you’re considering selling your home, now is the time to act.