Friday, November 14, 2014
By Admin

With attention now increasingly turning to arrangements for Thanksgiving  - now under two weeks away - it might seem like your chance to sell your home has gone until the New Year.

If you subscribe to this view, you are actually paying heed to one of the biggest myths in real estate.

Homes will continue to sell well throughout the winter, because, quite simply, many buyers don't have the luxury of waiting until 2015 to move. There are many contributing reasons for this, not least job relocation, completing a move before year end for tax reasons or just to be able entertain in bigger and better surroundings.

This year, however, there is another major reason that's making buyers very keen to move quickly - very low mortgage interest rates!

Currently hovering around an average of 4% for a 30 year home loan, mortgage rates have been an absolutely defining factor in the story of the US homes market in 2014.

Widely predicted to rise steadily when Government support for the housing market started to fall away at the end of last year, rates have stayed ultra low due to a wide range of other economic influences, not least international uncertainty, which is still chipping away at investor sentiment and encouraging the purchase of "safe haven" instruments such as Mortgage Backed Securities, keeping rates much lower than they arguably had any prospect of being when the real estate industry looked into the crystal ball about 12 months ago.

Small wonder, then, that there has been a very close relationship between rate levels and new home sales over the past few years, to the point where we saw US home sales rising to a six year high, after the traditionally busiest mid-summer selling season was behind us! This was due to a fall in rates to 16 month lows.

It all adds up to an amazing opportunity for home buyers and sellers right now. We would strongly encourage you to remain an active buyer and/or seller and not to put things off until the holidays are behind us.

There has rarely, if ever, been a more compelling argument for really vigorous home sales in what is traditionally a quieter time. Mortgage rates will inevitably rise at some unpredictable point and buyers who put off their purchase, and indeed sellers who procrastinate about getting listed, are running the risk of missing a great opportunity to buy or sell before 2014 is consigned to the history books.

Remember, too, that because some sellers do take their homes off the market at this time of the year, no matter what the industry tells them, you will have less competition and will therefore also improve your chances of getting the very best price! What better way to ring in 2015 than knowing your home sale and/or purchase is already sorted!

As always we would be delighted to provide you with more background information on the significance of the current situation, so please don't hesitate to get in touch with us for an informal discussion related to your own individual needs and circumstances.