Realtor Brandon Brittingham
Answers Your Real Estate Questions
Q: I’ve heard that fewer homes are available for sale this season. Should I buy or sell now, or wait awhile longer?
A: If you’ve been thinking of selling or buying a home, now might be a good time to step off the sidelines and move forward. Here’s why:
The number of houses for sale on Delmarva––the current inventory––is unusually low. Meanwhile, demand for housing has risen. The result is an undersupply of homes, which in turn leads to competitive bidding and higher sales prices––good news for potential sellers who have been waiting for their homes to rise in value.
Buyers, on the other hand, may decide that they need to act quickly before prices rise further. Savvy buyers are also aware that interest rates have risen twice since December 2016 and are likely to increase again in the second half of 2017. Securing a loan now can mean substantial savings in interest payments or, looked at from another perspective, more house for a given monthly payment. (An interest-rate increase of one percentage point raises the payment on a $100,000, 30-year loan by roughly $60 dollars a month; over the life of the loan, the buyer would pay additional interest of about $22,580.)
Is inventory likely to remain low in the spring and summer of ’17? Yes. Although many developers and builders are ramping up production, the number of new homes “in the pipeline” is unlikely to match demand. As a result, you can expect the housing market to become increasingly competitive––meaning more buyers offering more money for a shrinking number of homes.
According to the National Association of Realtors, the nationwide supply of homes in March was 6.6 percent below that of a year ago, in part because of slow new-home production. Meanwhile, U.S. home prices in February 2017 were, on average, 5.7% higher than in 2016.
What do these trends mean to you and your neighbors here on Delmarva? Simply put, if you’re looking to buy, the sooner you act, the more likely you’ll be to find a good home at a good price and a low interest rate. If you are a potential seller who has been waiting for the market to heat up, you may discover that the value of your house has risen substantially since you last checked.
In any case—whether you’re thinking of buying, selling, or both—my teammates and I at the Maryland and Delaware Group of Long & Foster would be pleased to discuss your needs and answer your questions. As the most active and successful real-estate team on Delmarva, we know the local market better than anyone. And if you decide to buy or sell, we can offer you friendly and personal service, the collective wisdom of our experienced team, and our unmatched, state-of-the-art marketing resources.
The Maryland and Delaware Group of Long & Foster
107 Williamsport Circle
Salisbury, MD 21804