Demand for homes throughout the country is outstripping supply, nationally hovering around a month of supply. Locally we are experiencing less than a month of supply, this is the outlook through the next several months, supported by a recovering economy, solid gains in employment, very low interest rates, and Northern Colorado being a destination in the work from home movement. Home prices have risen on average 8% on a national level over the last twelve months, which is the fastest pace in six years. Northern Colorado is well above the national number with an average price gain of 13%, which is indicative of a real estate market that is sought after as well as open to growth.
As a seller in this market there are many items to consider, property is a great long-term investment, how can you maximize the value of your property as a retirement asset, what are the tax ramifications, steps to achieving what you want out of your property, etc.
Be careful that you don’t get swept up in the media hype and act too swiftly. Your property is likely your largest financial asset – and your home. Long term lifestyle planning should be an important influence when you want to sell, not just price. Below are a few tips to help discover if you are ready to take the steps down the seller's path.
It’s about local, not national
Regardless of the national or capital city headlines, property is all about local markets. So while a general environment of positive price growth is great news, always check what is happening to prices in our neighborhood. Have some conversations with local agents (I’d be happy to help!) and conduct research online to help you to understand how home prices in our suburb is performing and the supply and demand equation locally.
Is your home hot?
The market may be on fire, but how do buyers feel about your particular house style? While all boats float in a high tide, some property types will be more in demand than others from neighborhood to neighborhood. So if you’re selling an unrenovated and dated property in a market of all near new homes, even a hot market may not offer the dividends you hoped for. On the flip side, if you’re selling a large family home in an area demanding upgrades, you could be in luck.
Swings and roundabouts
If you sell when the market is rising, it’s highly likely you’ll also buy your next property in an upward market too. While this can be daunting, there are things you can do. If you’re worried about not being able to find a suitable property to buy, consider renting while you assess your options. Moving to a different suburb or property style – even considering a lifestyle change – can also ensure you cash in on the benefit of the higher price in your original suburb.
Watch the supply and demand curve
The economic data points to us being in a sellers market, but changes to interest rates, employment or the stock market can change this quickly and it pays to be vigilant. It also pays to ask what is most likely to happen. As we head into warmer weather, more homes will enter the market and this may help prices ease, or alternatively, make the market even more active.
What’s your life plan?
Regardless of what the market is doing, the most important thing is to consider your own personal life goals and the role that property plays in these. Your property is likely to be your largest financial asset – and your shelter, security and place to raise your family. Lifestyle desires should always be an important influence when you want to sell, not just money and optimizing the market. If this feels like the right time for you, then get into the market.
If you would like to continue this discussion please contact me, I will show you the local prices, buying trends, how long it will take to sell, and how to maximize the value of your home.