Should I Sell Now or Wait Until Spring? Record Low Interest Under 3%

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The first point we want to make is that we are now experiencing record low interest rates, and with the election and everything else going on we don't know if they will last until spring.

A question that I get asked a lot by homeowners considering selling their home is “When is the best time to sell a home?” and the answer almost always surprises them. Though there is a common misconception that the best time to sell a home is in the spring and summer months of the year, the truth is that selling during the fall and winter can be just as strong.

There are several reasons for this – and depending on your motivation to sell the property, you may not have to wait until the following year to list your home to get results.

Fewer Homes on the Market Results in Less Selling Competition

As the year goes on, more and more sellers remove their home from the market. They either buy into the notion that with less buyers out there in the winter months their home won’t sell. Another reason is they feel the holidays should be without interruptions for showings throughout. 

Buyers Try to Avail Tax Advantages of Homeownership Prior to Year-End

A major benefit of homeownership is the many tax advantages that come with owning a home. And as the end of the year approaches, more and more prospective buyers seek to find their dream home so they can include the purchase in the upcoming tax filing.

Serious Buyers Buy Regardless of Season; They Are Seeking the Perfect Home

When it comes time to buying a home, as buyers are looking – the time is already right for them. Add to that the factor the Internet plays in with buyers’ readiness by the time they begin actively looking and you will find far more serious buyers interested in your property. This is particularly relevant if they have been shortlisting homes and yours is among the few available ones that fit their criteria.
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At the end of the day, it is important to keep in mind that the market never sleeps. Sure there are more buyers in the springtime but there are also far more homes competing against your listing. When deciding whether this is the right time for you, consult with your real estate agent and discuss all the issues at hand. Just know that you will likely not experience much difference in your selling success if you choose to list during the fall and winter months.

Seven Reasons Why This is the Best Market We’ve Had in Seven Years

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After the housing market crashed in 2007, things went downhill fast and they stayed that way for a long time. Countless Americans suffered distressed sales with many losing their homes – while lenders tightened up their lending practices in light of subsequent mortgage scandals.

But it seems that all of a sudden things improved and 2012 is the “it” year when things finally turned around. In fact, for many local markets this has been an unprecedented year in terms of sales. This year also marks the beginning of an upward trend in prices for many markets too. We are now experiencing the best real estate market that we have had in the past seven years – and here are seven reasons why.

Interest rates are below 3% – a once in a lifetime rate.
Super low interest rates have increased buyers’ buying power by a large amount, allowing them to afford more house than ever before and paving the way for more buyers to be able to purchase their own home. With rates this low, purchasing is the better option as opposed to leasing a home.

Banks are lending money after a long period of slowed-down lending.

After years of tight lending practices, lenders are finally easing up on strict guidelines and have relaxed the minimum requirements needed to apply and be approved for a loan. Where just a few years ago FICO scores below 680 became a challenge, lenders now are willing to approve most borrowers with steady income and a FICO score of at least 640.

Prices in most areas are the lowest they have ever been as a result of our recession. 

After a long time, homeowners in many areas are finally seeing their home values begin to trend upward. Some markets are seeing an increasing trend faster than others but overall the real estate market has improved and prices are continuing to stabilize.

Inventory levels are beginning to shrink with the total number of listings down from a year ago.

With sales, sales and more sales on the record, inventory levels have steadily declined during the past year or so. Across the board in almost all marketplaces in the US, there has been a significant decline in the number of available homes on the market. Not only does this cause a spike in demand but it also allows sellers a chance to attain higher list-to-sale ratios.

First-time homebuyers are active in the marketplace, fueling the entire real estate market.

What happens here is that when first-time buyers buy homes, the homeowners that end up buying up move into larger homes. The homeowners of those properties need a place to move to and they end up purchasing more expensive properties. In essence, this results in a positive cycle of activity in the marketplace.

Appraisers are estimating homes at more favorable values.

For a long time appraisers were very reluctant to assign generous values to homes. This was in part due to the gross over-valuation as a result of the pre-2007 housing boom but also appraisers were comparing sold properties from the immediately preceding six months, a time of distress for many homeowners. Today, appraisers are finally being more liberal.

The economy is experiencing a boost, as is typical during an election year.

One aspect of a Presidential election year is that the economy is temporarily given a boost. And this year is no exception. With the Fed actively working to keep interest rates down, jobs reports improving across the country and overall consumer confidence on the rise – these positives are reflected in the housing market.

USDA Loan Facts

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With the countless of Americans struggling in one way or the other, the US government has made several programs available to consumers that will help them to break out of the difficult situation of the past several years. One such program provides loans to borrowers looking to buy single-family homes in rural areas.

The USDA program in Wisconsin is available to rural customers in southeastern Wisconsin and the single biggest benefit is that the amount needed to secure the purchase can be as little as no money down. We met with mortgage professional Dennis Prosser of A+ Mortgage Services, Inc. and asked him about some more of the frequently asked questions about the USDA program.

How Do You Qualify for a USDA Loan?

A qualified borrower must be seeking a single-family residence and meet program income requirements. For a family of four, the income level starts at $84,000. For families with more than four persons the annual income requirement is $111,000.

Are Only Some Properties Eligible?

There are two rules as to which properties are eligible under this program. First, they must be single-family residences, meeting income requirements as listed above. Second, the homes must be located in rural areas.

What Areas Are Considered for This Program?

With the exception of Milwaukee County, all of the following counties plus additional surrounding counties are considered valid locations whenever rural areas within each are being sought:

         - Kenosha

         -Ozaukee

         - Racine

         -Walworth

         -Washington

         -Waukesha

What Kind of Down Payment and Interest Rate Should I Expect To Pay?

Depending on the parameters of the application, little or no down payment is required to secure the USDA loan. Interest rates are currently at their record setting low with the average rate right now in our area being about 3.75% on a 30-year fixed rate mortgage.

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If you would like to find out whether you qualify for a USDA loan and can pay little to no money down on the purchase of your home, contact the Roth Team at rothteam@shorewest.com or by calling 262.797.6453. You can also contact Dennis Prosser from A+ Mortgage Services at 262 679 8500. We look forward to hearing from you!