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Selling season

Less competition and looming rise in interest rates make selling sooner a safe bet

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September 25th, 2015

If you are on the fence about selling your home, real estate experts point to a variety of factors like shrinking inventory, low interest rates, and rising rental costs that may persuade you that now is the right time to make your move.

“Many homeowners are missing out on the opportunities in today’s housing market,” says Laura Snyder, a real estate consultant with Keller Williams’ Bel Air, Md., office. “Fannie Mae’s National Housing Survey (NHS) found that as many as 15 million homeowners underestimate the equity they have in their homes, so they’re reluctant to consider buying another one. Those homeowners underestimate how large a down payment their home equity could provide.” 

Rising interest rates

According to Snyder, those perceptions are especially surprising since home values are up about 20% from 2011 to 2014. Further evidence, according to Snyder, that price appreciation is up comes from the latest home price index from CoreLogic, a major real estate tech and data firm who reported that home prices across the country in June were up 1.7% for the month, and up 6.5% annually, marking 40 consecutive months of home price gains.

“The July Real Estate Trends report from Realtor.com shows the median list price is up 7% year-over-year, but days on the market increased to 71. Their chief economist said this suggests the market is finding more of a balance, but demand is still strong,” says Snyder. 

Still, she warns, “Interest rates are expected to go up 1% by this time next year, which means buyers will be able to afford 10% less than they can now. This is one reason lenders are encouraging buyers to look now.” 

For retirees looking to downsize to an apartment home at Oak Crest, an Erickson Living community located in Parkville, this means selling sooner rather than later may be more profitable and offer more peace of mind. 

Real estate agent Mark Richa of Cummings & Co. Realtors says fall is a great time for homeowners to list their house for sale. 

“September is almost like a new year where buyers are back from vacation and starting to put their plans into action when it comes to purchasing a new home,” says Richa.

Favorable conditions

After 13 years of condo living, Patricia Beard decided she was ready to trade in her two-bedroom, two-bath Perry Hall condominium for a maintenance-free apartment home at Oak Crest. Her condo, which she listed with Richa, sold in just two days.

“Mark showed me comparable properties for sale  in the area and how long they were on the market, and we priced accordingly,” says Patricia. “We put my condo up for sale on a Monday, and it sold the next day to the second person who looked at it.”

Erickson Realty and Moving Services

For Oak Crest-bound retirees who do decide to sell this fall, there are plenty of resources available to assist them throughout the process. One of the perks future Oak Crest residents receive is assistance from Erickson Realty and Moving Services, a special program that offers complimentary coordination of all realty and moving needs, including downsizing, home staging, packing, as well as connecting you with experienced real estate agents like Snyder and Richa.

Still, Richa says, in the end there is never a perfect time to sell or to move. It’s what’s perfect for you that matters most. 

“Just like the housing market goes up and down, so does the cost of retirement living,” says Richa. “Make the move when it works best for you, and everything else will fall into place.”

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