By Jess Barron, Lindsey’s Inc. Realtors
With spring right around the corner, it is the time of year when sellers and real estate agents start to prepare listings for the “busy season”. More homes are sold in the spring and summer than any other time of the year. But there are several reasons why it’s a great time to go ahead and place your property on the market.
We are still enjoying historically low interest rates but this will not last forever. 30 year mortgage rates are, currently, around 4%. Experts predict that these rates will rise to 5% by the end of the year (Realtor.com). There are many buyers, in our local market, that are scrambling to purchase a home while the rates are low. If you are purchasing another home after the sale of your own, listing and selling quickly will mean that you will be able to take advantage of the low interest rate on your new home.
Inventory is very low in Coweta and surrounding counties. In fact, as of January 24th, 2018, there were less than 600 single family detached homes for sale, in Coweta County (according to GAMLS). Supply is low and demand is high so prices are increasing. I have seen more multiple offer situations and back-up contracts, recently, than I have ever seen before. Cash buyers are active as well. According to the National Association of Realtors, Cash investors accounted for 22% of all home transactions in November of 2017.
The economy and people’s financial situations are stronger. Consumer confidence and the stock market are both way up. For the first time since 1960’s, the Fed has projected that the unemployment rate will drop below 4% (Realtor.com). The housing market has already reflected this.
Existing-home sales increased 5.6%, in November of 2017, and reached their strongest pace in 11 years, according to the National Association of Realtors (Realtor.com). Not to be ignored is the GOP’s tax legislation, which nearly doubles the standard deduction. National Association of Home Builders Chief Economist, Robert Dietz says the income effect is that most people are getting a tax cut – which should help (buyer) demand (Realtor.com). This means more buyers will be looking for homes, with more money in their pocket.
Lastly, but certainly not least, I wanted to discuss Millennials. As you may know, many millennials have been affected by student debt. But with market conditions improving, it’s a good time for millennials to make that big purchase. According to Realtor.com data, millennials could account for 43% of home buyers taking out a mortgage in 2018, a 3% increase from 2017. This means more buyers in the market and good things for sellers in 2018.
Jess Barron is an Associate Broker with Lindseys, Inc. Realtors and President-Elect of the Newnan-Coweta Board of Realtors.