March Residential Market Tip - The Market Ahead
Change is just around the corner in the real estate market. Our trusted network of mortgage lenders have given us the heads-up that the U.S. Government is in the process of making decisions that will impact how Americans qualify for federally funded loans for secondary properties. This could lead to more stringent requirements in qualifying for a mortgage loan and the loan amounts awarded. Also, a general continued rise in interest rates for all loans is projected. There is still a lot of good news, however, for those who decide to buy and sell now.
As realtors, we usually anticipate spring as the start of our “busy season”. However, this year has been quite different than the norm, to say the least! The market has us on our toes as we continue to be busy helping more Mainers buy and sell straight through this winter season without the lull we would normally expect around the holidays. Interest rates have risen slightly and continue to be considered quite low, historically. We are working tenaciously to help increase inventory for buyers, as it significantly benefits those who are ready to sell.
Selling now may be the best decision of 2021, for the following reasons:
There are a lot of highly qualified buyers looking to buy a home right now. We usually see a lull in buyer activity during the winter. However, because so many buyers have not been able to secure a home due to this season’s low inventory, there has been absolutely no lull this year and demand is higher than ever. Because interest rates are still very low, those buyers are able to afford "more house" for their money, resulting in higher sale prices for sellers.
Home values have escalated significantly. Those who are selling their homes right now are cashing in on the same amount of equity that normally would have taken ten years to accumulate. This is due in part to the immensely high demand, which will not be the same in the spring as more homes come on the market.
You may not even need to go on the market to sell your home today when working with the right agent. If you choose to go on the market, the chances of receiving multiple offers is higher than it's ever been. If your house is priced correctly, you could potentially receive multiple offers above asking price.
As a part of Keller Williams Realty Maine, we collectively sold more homes than any other real estate company in the state of Maine in 2020. We also sold those homes for more money and less days on market (on average) than any other company in Maine. That trend has continued into 2021 and, as of the end of February, we sold even more homes than we did at this time last year.
One of the reasons The Fletcher Group and KW Maine are so successful lies within the power of our network. In Maine, real estate licensees are legally not allowed to share “coming soon” properties outside their agency. This means that the larger and stronger the network within an agency, the better. At KW Maine, our listing agents are able to share properties that are not yet on the market with our network of 500+ agents, many of whom have buyers ready to go. This results in both our buyers having a huge advantage in this market, with a uniquely special offer only our team can provide, and our sellers having the option to sell before even going on the open market.
Have you considered cashing in on the equity position of your home? The Fletcher Group is currently working with pre-qualified buyers who are seeking first time purchases now. We have retirees looking to downsize or move into single level living. We also have investors selling and purchasing single family homes and multi-units. We have families growing in size and looking for upgraded space. There truly is a buyer for every home!
At The Fletcher Group, we are here for all your real estate needs. If you have any questions about the current market and what it may look like to take advantage of this incredible opportunity to sell, please reach out to me and we’ll set up a time to talk more.
Written by Amy Dresser, Sales Agent for The Fletcher Group