With low mortgage interest rates and depressed home prices, the last few years have garnered a lot of talk about how great a time it is to buy a home in Knoxville. While that has absolutely been true, let’s talk about why it might also be a great time to sell your Knoxville home. Here are some reasons why right now may be the perfect time to put your Knoxville home on the market.
First reason is HIGH DEMAND. Knoxville home buyers are serious about buying and are out in full force, holding true to what we are seeing on a national level where buyer traffic is 31% stronger than a year ago. National statistics are showing that homes are selling at the fastest pace since the market spiked in response to the home buyer tax credit. The latest National Association of REALTORS Existing Home Sales Report showed that monthly sales increased 9.7% over the same month last year. Total sales have been above year-ago levels for 22 consecutive months.
The second reason is that inventory is beginning to increase. Nationally, total housing inventory last month rose to a 5.2-month supply at the current sales pace, compared with 4.3 months in January. Many experts expect inventory to continue to rise as more sellers are again above water on their mortgages as a result of rising home prices. Selling your Knoxville home now, while demand is still high and before supply increases may get you top dollar.
The third reason is increasing competition with new construction. The last few years, sellers haven’t had to compete with new homes, but with low inventory levels, and a recovering market, more builders are ramping up their construction. As they get more comfortable they will build more homes, thus increasing the competition with your existing home. Better to sell now, with less competition from new, energy efficient homes with modern amenities.
The fourth reason is rising interest rates. According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year mortgage have jumped to 3.98% which represents an increase of more than ½ point since the beginning of the year. Economists across the board seem to be projecting interest rates to keep rising. The longer you wait to sell, the higher your interest rate will likely be when purchasing your next home.
The final reason is lifestyle. Why is it that you are looking to sell your Knoxville home in the first place? What is more important right now, a few more dollars or moving on with your life? Perhaps you are selling to get closer to family, or looking to retire to a different area, or downsizing financially to give yourself more freedom. When you weigh the benefit of a few more dollars against the real reason you are selling, it most likely gives you the biggest reason to sell your home now.