Monday, February 20, 2012

Why Should I Sell Now?

Sellers are in the same boat as buyers right now. "Should I sell now? Should I wait? Should I downside?" 

To answer this question, let's check out objectively what is going on in the market from a seller's perspective:

1) The number of homes for sale are down 39% since last year, which means thoughdemand from buyers is UP, supply is DOWN

2) The absorption rate is at 4.4 months, which again means there is less inventory than demand. A balanced market is 6 months, anything below that means it is a seller's market.

3) With interest rates so low, many buyers are in the market right now, which means more competition, exposure and demand for your house. There are multiple offer wars ALL over the Denver-area right now. I know, I have been in 3 of them in the last 2 weeks!

4) Average "days on market" are also down 14% since last year, which means houses are selling faster. 

5) If you are selling in order to downsize (or upgrade), it is a perfect situation for you to buy (see all the "Reasons to Buy" above!).  

All these reasons are objective reasons from the market and what is actually going on in the field. Verdict is: It can't get much better to buy or sell right now!