If you listed your house last week, you should be patting yourself on the back and waiting for the high-dollar offers to roll in. At least, that’s what the statisticians at Realtor.com say. According to a recent analysis, homes listed between March 31 and April 6 were likely to get 14 percent more views and face 5 percent less competition on the market. The result of these numerical advantages? An estimated six fewer days on market and 6 percent higher sales price. Even better, these sellers are about 1 percent less likely to have to drop their asking price, the analysts noted.
Of course, lower mortgage rates are helping the process along as well. Last week, the 30-year fixed-rate mortgage averaged just over 4 percent, hitting a 14-month low and posting the biggest weekly decline in mortgage rates in nearly 10 years. This week, mortgage rates are still holding steady at 4.08 percent, just .02 points higher than last week. The entire month could benefit from this downswing in rates as plenty of buyers are, apparently, in a spending mood. Purchase mortgage application rates spiked last week by 18.6 percent, reported Freddie Mac chief economist Sam Khater.
“Putting a home on the market in early April positions sellers to attract buyers seeking to close and move before the beginning of the school year,” observed Realtor.com’s chief economist Danielle Hale. She added, “June is often considered the peak of home-buying season, but our analysis found the first week of April is best for sellers looking to maximize list price”.
Exuberant springtime buyers and low interest rates have many analysts hoping for a smooth summer for housing. Khater explained, “While the housing market has faced many headwinds the last few months, it sailed through the turbulence to calmer seas with demand buttressed by a strong labor market and low mortgage rates.” He went on to predict “the benefits of the decline in mortgage rates we’ve seen this year will continue to unfold over the next few months due to the lag from changes in mortgage rates to market sentiment and, ultimately, home sales.”
At time of publication, 30-year fixed-rate mortgage interest rates averaged 4.08 percent, down from 4.4 percent a year ago. 15-year fixed-rate mortgages averaged 3.56 percent, down from 3.87 this time last year. 5-year ARMs dropped to 3.66 percent from last week’s 3.75 percent, but a year ago, these vehicles averaged 3.62 percent.
What do you think?
- Is now the time to sell?
- Is now the time to buy?
- Are you building your real estate portfolio or liquidating it this spring? Why?
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