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Don't Delay–Sell Your House NOW!

 

Right now—as you read these words—a dramatic shift is occurring in the Maine real estate market. Suddenly, experts are seeing flashing red signals that mean one huge thing: The time to achieve a maximum pay-day when you sell your house is NOW—before the housing market cools down like a blast of arctic air.


New Conditions That Spell S-E-L-L

As we noted in a recent blog, “The Sell Your House Strategy” is taking on new urgency as conditions on the ground rapidly change. The Bangor Daily News just noted there are “5 Signs the Real Estate Market is Cooling in Maine.” In the article, they note that Lawrence Yun, chief economist of the National Association of Realtors, says demand for homes is likely to decline by 9 percent by later this year. Demand plummeting that rapidly should trigger falling home prices in Maine and—in fact—that’s exactly what’s starting to happen.


Other Key Reasons to Sell NOW
Drawing back to look at other key forces in the current real estate market, we see again and again factors that should jump-start your “sell your house NOW” impulse. The first is mortgage rates. Not only have they risen sharply since January, but the Federal Reserve has just announced large-scale ADDITIONAL hikes that will make mortgages significantly less affordable to buyers. (As we write this, the average rate on a 30-year fixed mortgage is 5.71 percent, which is dramatically higher than one year ago, when rates were 3.13 percent.) As this trend continues, it’s not difficult to see where it will lead: As borrowing costs rise, demand for homes sinks. As demand for homes sinks, so will the price you can ask for YOURS.
So the critical question becomes: Will you sell your house NOW, when you can get the MAXIMUM “pay day” for it—or delay until its value has likely declined?


Final Reason to Sell:  Recession Fears
According to new reporting from The Washington Post, “Many economists and Wall Street analysts are now predicting a recession later this year or next year.”
Leading business publication Forbes echoes this fear: “Words like ‘pain’ and ‘higher unemployment’ have seeped into the [Federal Reserve’s] messaging, which means they know they will likely have to raise the unemployment rate to a level that is consistent with a recession.”
And what will be the impact on home prices if this occurs?
Mark Zandi, Moody’s Analytics chief economist, foresees a “housing correction,” in which home sales will fall “significantly” due to falling demand. He projects this “housing correction” will see year-over-year home-price growth decelerate to 0 percent by this time next year.
It all points to one inescapable conclusion:  To MAXIMIZE the amount of money you receive when you sell your house, the time to sell is NOW.

Looking to buy your dream home in central Maine—or sell one? We’d love to assist you, and invite you to contact us today.
 

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