The uncertainty of the global economy at the moment has created a unique and complex set of circumstances which mean that if you do have the need, it is very cheap to borrow money at the moment.
The most obvious way to leverage these very low interest rates is to get a mortgage and buy a home, which is why more first-time buyers are house hunting and getting on the ladder right now. But what about if you already own property; is now a good time to sell?
Low Rates, High Demand
The fact of the matter is that when mortgage rates are low, the demand for housing is high, which in turn means that sellers can achieve more appealing asking prices for their property without fear of putting off prospective buyers.
Of course things can change quickly, so keeping an eye on the current mortgage rates using a site like Moneywise is a good idea if you are aiming to pick the perfect moment to sell, or avoid an upcoming slump in demand driven by rate hikes.
When you do sell your house, the strong demand fuelled by low rates will mean you have more money to play with when choosing your next property, although of course the knock-on effect will mean that prices here will also be higher. If, on the other hand, you are selling an investment property, this will be less of a concern.
Increased Competition Catalyzes the Sales Process
Another reason to sell your home in today’s market is that increased demand from buyers means that there is more motivation amongst those in the market to push through sales and make decisions quickly, rather than dallying and delaying as they might do in more stagnant circumstances.
If you are still living in the property when it goes up for sale, this will also mean that you are less likely to have your routine disrupted by the need to allow agents in to handle viewings, or to get out of the way altogether to facilitate an open house event.
Likewise with buyers looking to lock in deals on homes before they are beaten to it by anyone else, they will be more amenable to playing by your rules, such as settling on a moving date that suits you, rather than being pushy and imposing their own will on proceedings.
Refinancing is an Option
One side effect of the state of play in the housing market today is that home owners who do not necessarily want to sell up, but still want to take advantage of low interest rates, may consider refinancing instead.
Lenders will be more likely to let you borrow against the value of your property, and do so without having to stretch your monthly budget much further. This will not suit everyone, but does present an intriguing alternative take on current market conditions which still put sellers in the driving seat.
In short, it is all about understanding the balance of power and where it lies. Today’s housing market is great for sellers, since low rates lead to more lending and an uptick in those looking to buy.
This is not going to be the case indefinitely, so it is better to strike while the iron is hot, rather than procrastinating until it is too late and the opportunity has passed you by, whether you are selling a home or hoping to buy one from a motivated and experienced vendor.