IS IT THE RIGHT TIME TO SELL MY HOME?
With the current low market inventory and low
interest rates it is a fantastic time to sell your home in Anchorage.
Selling a home at a profitable rate is every sellers dream, and
it is also a great achievement. However, for you to get the most proceeds out
of the sale, there are many factors that you need to consider. Selling a home
in Anchorage, Alaska is not any different from any other state as you also have
to carry out intensive research on the property market and monitor the trends
before making that crucial decision to list your home. The most important aspect
is to analyze interest rates and understand the level of inventory in the real
estate market for your location.
Low interest rates encourage buyers
to buy homes. With record low interest rates more buyers are able to qualify to
purchase a home AND low rates also mean buyers can afford more (lower interest
rates means a lower monthly mortgage payment)….a lower payment lowers the buyer’s
debt to income ratio.
As far as understanding inventory in
your market, it is best to contact your local realtor for this statistical
information since they have access to their MLS data. The rule of thumb that
the inventory is highest during summer, which is the time when most people
offer their homes for sale, and lowest during the winter since few people are
willing to sell their home, is not always correct. Your Realtor can pull up the
trends and current data for your specific neighborhood.
Winter in Alaska might be over, and
the summer is in full force, but the real estate market has not yet been
affected by the change in seasons. The low inventory and low interest rates are
making it the best time for home sellers to relinquish the ownership of their
homes to the highest bidder. There are various signs that show why this is the
best time to sell a home in Anchorage.
1. HIGH PRICES FOR ACTIVE LISTINGS
The Anchorage real estate market has been experiencing good
tidings since the start of the year. The boom in the sector is evidenced by the
increase in sales volume from $167 million at the end of 2014 to $189 million
at the moment. The average price of homes in Anchorage, Alaska is between
$327,000 to $349,350 depending on condition and location. There has been a
slight rise in inventory for homes valued around the $500,000 price point, and
there are homes on offer for 21 months with prices ranging from $700,000 to
$999,000. However, most houses in Anchorage are listed for an average of 2.43
months or less. The high prices spell good proceeds for sellers since they will
make exceptional profits after making the sale. Consequently, the high prices
translate to more profits for the seller that they can later invest in other
profit generating activities.
Recently, there has been a population
upsurge due to increased birth rate and job relocations which has created the
demand for homes in Alaska. People have been moving to Alaska from other states
such as New York and Wyoming and Texas. These newcomers are willing to part
with a substantial amount of money to get a decent home; hence they are another
reason for the high prices in Anchorage. However, this high cost is not only
experienced in Alaska as there has been a recorded 6% rise in prices of homes
countrywide.
2. LOW INVENTORY IS AN ADVANTAGE TO SELLERS
The small inventory means that sellers have an advantage in the
Anchorage real estate market. This can only change if the supply for homes will
dramatically increase which is not likely to happen anytime soon. That is
because, if we account for the time that can be spent constructing a home, then
the inventory is likely to be quite small for some time. Only those who have an
already built home can cash in on this booming market. If you are a current
homeowner and wish to relocate, downsize or invest your home equity into
another profitable income property, this is the right time for you to make that
sale and take advantage of the situation. The extra money that you will make
will surely go a long way in improving your financial status.
3. INTEREST RATES ARE AT AN ALL TIME LOW
The advantage of maintaining low rates all the time is that they
will attract numerous buyers as they hurry to buy homes before the rates
escalate towards the end of the summer season or in spring. That will create
competition for the home that will also increase its price. Research indicates
that the best time to sell a home is when the interest rates are low. The rates
of mortgages in Anchorage Alaska have been low for some time now, but
economists predict that they will escalate in the near future. This trend has
surprised many because the Anchorage market is known to be quite vibrant and
unpredictable. Therefore, any seller should take advantage of the prevailing
situation and offer their homes for sale before the rates go up. If you are
considering selling your home in Alaska and have no prior experience in this
type of business, you do not have any to worry about how you will go about it.
That is because you can still successfully navigate the process, by just
enlisting the expertise of your local Realtor.
Other factor that can influence buyers
to purchase a home is if the cost of renting becomes greater than the cost of
buying a home. Since Anchorage’s rental market is extremely competitive and
lease payments are high, it will make better sense to acquire a mortgage and
buy a home rather than spend it on rent.
Selling a home requires careful
considerations and planning to ensure that you will make the sale at the best
time possible and gain the maximum returns with the least amount of time and
hassle. If you are looking to sell your home the first step is to reach out to
your local real estate professional for a FREE consultation and FREE MARKET ANALYSIS REPORT of your homes current value. You can contact our listing specialist
at Alaska Home Group of Keller Williams Real Estate at 907-865-6540 or visit
our website at www.AlaskaHomeGroup.com
Take advantage of the ready market
and the favorable conditions and make a substantial watch as your money
multiplies.
Contributed by:
Kylie Wyze: Keller Williams Real Estate
Realtor, CRS
101 W. Benson Blvd., suite 501
Anchorage, Alaska 99503
(907) 440-4661
"Now is the right
time." – Lotus Sutra
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