If you’ve been putting off selling your home or waiting for the market to improve, now is the time to consider a change. Make it your New Year’s resolution to list the home you financed with a VA home loan and take advantage of rising home prices.
Experts predict that the higher selling prices homeowners saw in 2012 will continue into the new year and may even rise by 5 to 7 percent, according to CNBC. The number of single-family home sales are also expected to rise by 20 percent, with an estimated 367,000 homes to be sold this year, according to National Mortgage Professional. The cost of homes on the market is increasing for several reasons.
Supply and demand
Since homes started to move hands in 2012, most homeowners are currently up against fewer sellers. This creates increased competition. More homebuyers are entering the market to upgrade or to become first-time homebuyers because of a stable economy. There is also increased competition between investors who want to purchase homes when they are still at relatively-low selling prices. The lack of supply coupled with increased demand allows homeowners to set their own price
Low interest rates
Interest rates are at an all-time low, making now a great time for sellers and homebuyers alike. Homebuyers and investors who put aside money for a new home are starting to take advantage of the rates, and sellers are able to quickly move the homes they put on the market.
There are certain cities where sellers have benefited the most. According to Kiplinger, home prices rose in several cities through the United States, including Phoenix; Minneapolis, Minnesota; Cape-Coral-Ft.Myers, Florida; Youngstown, Ohio; Boise, Idaho; and San Jose, California. In some cities, lower unemployment numbers did the trick. In others, confident consumers, including snowbirds helped the market improve. If you live in an area where home prices have risen drastically, consider taking advantage that and listing your home at a price higher than you could have a year ago.
You may want to sell your home for several reasons. Whether it’s to usher in the new year with a big lifestyle change or just because you want to upgrade, take comfort in knowing that 2013 is predicted to be a winning year for people who want to sell their homes. And remember it is important to use a real estate broker that is well-versed in VA loans and home sales, so a good bet is to contact a VA-approved lender and ask for a referral. Long-time VA lenders with deep knowledge of the VA loan benefit program are most likely to have a good network of military-friendly real estate brokers.