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Is Selling Your Home a Good Idea?

Updated on February 28, 2017

It’s been on your mind for a while now; is this the right time to sell your home and should you use a realtor? As a home seller, you want to get the most for your property and you don’t want it to be stuck on the housing market for months. These are the same worries that have crept into every home seller’s mind at one point or another.


Consider this, right now mortgage rates are still low which allows home buyers to get more home for their buck. When mortgage rates are low the confidence of home buyers are high which gives you a bigger pool of potential buyers. There has also been a steady market of millennial and baby boomer home buyers. And if you are in a city like San Antonio, the real estate inventory is generally low. This is the perfect formula for what I like to call an ethical sellers market.

Housing Market Forecast for 2017

I’ve never been one to speculate on the housing market, nor do I believe that myself or anyone else can accurately make housing market predictions when there are so many variables in play. BUT if I were that person that lives in a city like San Antonio and selling has been on my mind for the last couple years AND I’m looking to maximize my return on investment, 2017 would be the year that I would find a dependable San Antonio realtor and get that conversation started.

Want to know why I would consider selling? Well, there are really about 10 reasons why but they get pretty boring so I’m going to give you my top 3 reason to sell your home this year.

1) The MBB Effect

Millennials and baby boomers make up a combined 60% of the buyers market. As baby boomers continue to settle down and prepare to enjoy a more peaceful and moderate lifestyle, the millennials are setting the foundation for planning out their lifestyle design. And while these are 2 distinct and opposite sides of the home buyers spectrum, each accounts for about 30 percent of buyers in 2016. This trend is expected to continue throughout 2017.

2) Interest Rates Are at a Happy Medium

Smart home buyers are paying attention to the numbers. America’s baby boomers remember the 18 percent interest peak of the early 1980’s. (see graph). And they may be young but no millennial wants to encounter the 8 to 9 percent interest hikes that affected the market bake in the year 2000.

30 Year Fixed Rate Mortgage Average
30 Year Fixed Rate Mortgage Average | Source

According to Bankrate.com, between Nov 2012 and June 2013, interest rates on a 30 year fixed mortgage loan shot from 3.43 percent to 4.58 percent. Rates eventually slid back down to about 3.39 percent in August 2016. According to Realtor.com, these low rates began to lay the foundation for a “substantial increase in first-time buyers in 2017.” Entering February 2017, interest rates on a 30 year fixed mortgage loan sat at 4.02 percent.

30 Year Fixed
30 Year Fixed | Source

Why should the seller care about interest rates?

Do you remember when you bought your home? Let’s imagine for a moment that you are the buyer looking to buy your very first home in 2017. To put it into perspective, you are buying a $200,000 home, putting down a 10% down payment, and financing for 30 years at 4.02%. Your estimated monthly payment will be about $861. Over that 30 year period, assuming all of your payments we made on the exact day they were due, you would have paid a total of about $310,111.

However, if your interest rate is at 3.43% your monthly payment would be about $801 leaving you with a total of $288,453 paid after 30 years. Or on the flip side if rates went back up to it’s peak of 4.58% again, you’re looking at $920 per month, and $331,419 over 30 years. $119 per month is the difference between 3.43 percent and 4.58 percent. Over the lifetime of the loan this is a $43,000 difference. You better believe that the smart home buyer isn't sitting back hoping that the rates don’t go up. They’re smart. So they’re buying.

3) Low Home Inventory

Another reason you may want to sell your home in 2017 is that the number of homes being put up for sale has decreased. According to Realtor.com, real estate inventory across the top 100 metropolitan cities is down about 11 percent and expected to remain steady throughout 2017. To take it even further, home inventory reach 4.04 million homes for sale in 2007. There were only 1.85 million homes for sale in November 2016. As a home seller, this means less competition, more demand, and if you sell your home with a realtor, reduced time on the market.


Spring and summer times have always been the season when the market really gets hot. This is a time when students transition to the work force, service members relocate to new posts, family's upgrade to bigger homes, and retirees also upgrading, just to smaller homes. According to Realtor.com in Januray 2017 homes average 96 days on the market before being sold. So if you have been looking to sell your home, 2017 just might be your year. Find a good realtor and get started now.

This is not a housing market prediction. This is simply an analysis of real estate market trends based on data pulled from sources such as Realtor.com, Trulia.com, and BankRate.com. Always do your own research but I hope that this article adds value by giving you a starting point.

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