People ask us all the time – “Why should we list now instead of waiting until Spring when the market gets hot again?”
The answer is pretty simple – Virtually every economic expert predicts interest rates for mortgages will go up since the Federal Reserve just raised the federal fund rate this week. Other interest rates, like mortgages, have been slowly creeping up, with home loans going to just over 4% on average. That is still good money for a 30 year fixed loan, but each increase has a tendency to cut into buyers’ purchasing power and price some out of the market. The Federal Reserve believes mortgage interest rates will continue to rise. This is not good news for buyers and certainly fewer qualified buyers is not good news for sellers.
Another reason to list now is even more basic – supply and demand. As existing homes are in short supply right now, there is more and more pressure to develop new lots and build new construction, both speculative and custom homes. At last count in Silverton alone, a few hundred new lots will come to market in the next year. Those will be new homes with modern amenities and lots of bells and whistles. If you are a seller, do you want to compete against a huge selection of new homes? Do you want to see prices drop because more houses are soon to be available? Do you want to see fewer buyers because they have more choices and are fearful that interest rates will decrease their buying power or price them out of the market?
Our best advice? Have a wonderful Christmas, awesome New Year’s, enjoy the holidays with your family and friends. Then hit the ground running by listing your home when the New Year is young. We believe you will be glad you did.
Bledsoe Santana Team Realty, LLC
Dixon Bledsoe, Licensed Principal Broker in the State of Oregon
Office: 503-874-4666 Cell: 503-602-4320