Rising home prices, demand from home buyers, less competition, and low interest rates are making 2015 a stellar year to sell for many home owners across the country, and especially in our hot Seattle market.
There are 4 factors behind why this year is shaping up more favorably for sellers:
1. Strong demand from buyers. Millenials and first time buyers are out in force, driven by our growing job market and low interest rates. Those who lost homes to foreclosure or short sale during the downturn are returning to the market as well.
2. Prices are skyrocketing. So far in 2015, appreciation is at its highest rate since 2007. City-wide for Seattle, prices have appreciated 12% from June 2014 to June 2015, with some neighborhoods much higher.
3. Sellers have less competition. Inventory continues to be extremely tight, with less than a months inventory in most Seattle neighborhoods. The number of buyers far outweigh the number the sellers.
4. Interest rates are increasing. Although rates continue to be extremely low (hovering around 4%), just a couple weeks ago we saw rates closing in on 4.5%. Experts around the country are continuing to predict that we’ll see rates around 5% by early 2016. As rates increase, buying power decreases.
Information for this post adapted from http://realtormag.realtor.org/daily-news/2015/07/24/3-reasons-why-its-great-time-for-sellers#sf11309959.