Is Now The Time To Sell?

Author: Rich Barnhart

Author: Rich Barnhart

This is an interesting question that a lot of property owners are asking themselves and the answer is different for everyone. In South Florida, like many markets across the country, we have low inventory in many segments. Combine this with increased demand driven by low interest rates, affordability and even institutional investing, and you have property values increasing almost across the board.

Everybody’s situation is different, but lets consider the effect of rising mortgage rates on the typical homeowner. Most experts agree that it is only a matter of time; interest rates are going up. We have been spoiled with sub 4% rates for some time, but rates have risen about 1/2 point in the past month and you should expect to see rates in the 5 to 6% range in the next couple years. So if you plan to sell your home in the near future not only will your home be less affordable for buyers (less demand), but your cost of buying a replacement home will be significantly higher.

On the other hand, if you are an investor holding inventory with good cash flow you may want to hold on and ride values up before selling. Here is a great segment on CNBC with Zillow CEO Spencer Rascoff…

Blog Author:

Rich Barnhart

Rich is the broker and owner of By The Sea Realty and a frequent contributor to the company's real estate blog.
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