What Opportunities Lie Ahead in Our Winter Market?

Today I want to talk about why the winter market represents a golden opportunity for home sellers.

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If you’re considering selling your home in this winter market, I have good news for you—winter represents an incredible opportunity. Why? There are a few reasons.

First, home prices have reached record highs over the past few months. In fact, they’re higher now than they were during the peak of 2006. In spite of the growth we’ve seen in our current market, we’re not experiencing a bubble like we saw 10 years ago, either. Instead, today’s high prices are primarily driven by a lack of supply.  

Second, we’re seeing a period of low but rising mortgage rates. For example, the average 30-year mortgage rate has been steadily increasing from its low of 3.375% last January to where it stands now at 4%. By historical standards, that’s still a very low rate. When you combine this with the possibility of interest rates rising even further in the future, it’s clear why so many home buyers are eager to take advantage of the current situation.

Home prices are high, and many buyers are re-entering the market.

Third, we’ve made it to the end of the election cycle, which means that many people who were sitting on the sidelines because of the election and its uncertainty are now re-entering the market and buying homes. This will keep demand healthy in the upcoming months.

Even though it’s only January, the spring selling season is definitely approaching. Spring is the hottest season for real estate in the Brainerd Lakes area, so you have to start moving now in order to take advantage of it.

Coming up with an accurate price is critical in getting your house sold for top dollar in the shortest period of time, so if you’re interested in selling, we’d love to sit down with you and share our marketing strategy. Just give us a call and we’d be happy to help!

How Has the Outcome of the Election Affected Our Market?

Our market has changed since the election, but it’s also remained the same in many respects. Interest rates are up, but they are still historically low.

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We’re over a month removed from the results of the presidential election, so today we’re discussing how the outcome has affected the real estate market here in the Brainerd Lakes area. There is good news and bad news, so let's start with the bad news first.

Interest rates have gone up since the election. In early November, the rate for an average 30-year fixed rate mortgage was 3.47%. Now, it has increased to 4%. Historically, rates are still very low, but the increase has made homes more expensive than they were.

Our market is still healthy.

The good news is that there seems to be a renewed sense of optimism that the market will continue to be healthy. There is a good sense of optimism that President-elect Trump will cut taxes. We hope that by following through with that promise, a lot of luxury home and lake home buyers will come back in the market to purchase vacation homes when those taxes do go down.

One way or another, the election is over. The stock market is hitting nearly 20,000, which is unbelievable. If you’ve been thinking of buying or selling in this market, we would be glad to help. Give us a call or send us an email. We would love to hear from you.

Happy New Year!

Why Should You Sell Your Home in the Winter?

If you are looking to sell your home, consider these five facts that suggest you sell during the winter.

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Should you sell your home in the winter? This is a question many people ask this time of year. Get the answer by considering the following facts.

1. Homes listed in the winter sell at least a week faster than homes that are listed during other seasons.

2. They sell for 1.2% more money and are 9% more likely to sell than homes that are listed during other seasons.

3. There is a lot less inventory in the winter, and the buyers are much more serious. We don’t get a lot of looky-loos. These are people that have to buy.

4. Interest rates are going to go up in 2017. This will affect the amount of buyers that will be qualified to buy your home.

5. You have to be closer to the correct market price, because you will have less showings. This forces you to start with the correct market price, which will get your home sold faster.
   Interest rates rising in 2017 will affect the number of buyers for your home.

Considering those facts, I would say winter is a great time to sell your home. If you have any further questions about the winter market, or if you are looking to sell your home, please give me a call or send me an email. I would be happy to help.