If you’ve been considering making a move, how do you know when it’s the right time to sell your home? It’s an age-old question and one that seems to be at the forefront of many people’s minds these days as home prices continue to climb and the market regains strength.
Housing experts generally agree that aside from a confusing national economic outlook, the local and national housing markets will continue to show steady improvement for the rest of the year. Interest rates are expected to remain low throughout 2013, making it easier for homebuyers to secure affordable mortgages. Additionally, home prices are slowly coming back from record lows.
Rising prices mean would-be sellers who had been holding back from making a move now are becoming increasingly confident they can afford to list their homes. The National Association of Realtors reported last month that home prices have experienced 12 months of year-over-year gains since 2012. The national median existing-home price, which includes single-family homes, townhomes, condominiums and co-ops, rose 11.6 percent in February compared to the year prior. February’s gain is the strongest since November 2005, when a 12.9 percent increase was experienced during the same time period.
In Tucson, February’s median sale price jumped nearly 20 percent over February 2012’s figures, according to the Tucson Association of Realtors. More sellers putting their homes on the market due to rising prices will be welcome news to the Tucson housing community, which continues to have lower-than-normal inventory levels. The Tucson Association of Realtors reports new listings are down nearly 16 percent from January, but are up almost 50 percent since February 2012.
Consumers love to ask whether we’re in a buyer’s or a seller’s market. A seller’s market usually is one with less than a six-month supply of inventory. With fewer than five months’ worth of homes available for sale nationwide, as outlined in February by National Association of Realtors, it appears to be a good time to be a seller.
(Editor’s Note: Andy Warren is President of Maracay Homes, the Arizona subsidiary of the Weyerhaeuser Real Estate Company. He serves on the Board of Directors for the Home Builders Association of Central Arizona and Greater Phoenix Leadership; as well as the Board of Directors and as an Executive Committee member with the Greater Phoenix Economic Council. He is also an active member of the Urban Land Institute.)