According to a new report by the National Association of
Home Builders, construction costs for single family homes are at the highest
levels since 1998. Lumber prices jumped 40 percent between April 2011 and April
2013.
What does that mean for you, the seller?
That’s actually good news. Typically, resale home prices
trail new construction prices. So if new homes cost more, your home price will
also go up.
Is this a good time to sell your home? Here are some facts:
1.
Interest rates are rising – today’s rate is 4.375%
(from Wells Fargo) as opposed to 3.77% in January 2013. Which means that for a
given monthly mortgage payment, buyers will have to settle for slightly smaller
homes or with less features.
2.
There are fewer homes on the market as compared
to previous years.
3.
We are seeing more and more boomerang buyers.
These are people who went into foreclosures or bankruptcy 3 – 5 years ago and
are back in the market to buy homes.
In the last 3 years, homeowners have tried to sell their homes
but could not get the price they wanted. This spring may get you a better
price.
Do you need a new market analysis? Call me at 803-348-9922 or
email me at vsashikant@gmail.com for
a FREE market analysis.
For... All Real Estate Matters!
