Today let’s discuss home equity and assess whether this summer is a good time to sell your home, land, or a business property.
Home equity loosely corresponds with how much housing wealth one has. It is the difference between how much is owed on a mortgage and the market value of a property. “Tappable equity” is the amount a homeowner can access while maintaining a 20 percent equity buffer. Homeowners can tap into their equity by doing a cash-out refinance or a home equity line of credit.
Mortgage rates remain high, causing many homeowners to hold onto their current low rates. This has led to many homeowners not listing their homes; creating a scarcity of homes for sale. Although new listings were up 20.6 percent at the end of April compared with the year before, the increase was smaller than the historical average. Low inventory in turn pushes up home prices.
In Taos County, the housing market has a median price of $542,000. On average, homes in Taos County sell after 79 days on the market, compared to 76 days last year. There were 18 homes sold in April this year, compared to 26 last year in Taos County. In Colfax County, the housing market median price is about $275,000 and average days on market was 219. The shortage in inventory in turn pushes up home prices, or in our case, keeps them in the higher price ranges.
While it is still early to say what this summer’s market might look like, we have seen some price improvements in our local housing market. With that being said, this summer could very well be a great time to list your property.
Where do you start? First, find a qualified realtor. A realtor will educate and guide on the selling process, discuss the home’s market value and pricing strategy and develop a marketing strategy for promoting the home and attracting buyers. A realtor can also answer questions the seller might have and can perform a CMA, or comparative market analysis. The analysis considers the location, age, size, construction, style, condition, and other factors for the property and its comparables; determining if the timing is right to sell.
Yet no amount of timing or marketing trends should determine what time is right for you; deciding when to sell is a personal decision. Personally, professionally, and otherwise.
Are you ready to move on, or up into bigger? Many sell when they change jobs or when their children switch schools, or when the kids fly the coop and the parents are ready to downsize. Maybe for some, the older they get, having a lot of property becomes too much to handle. So, consider your own situation when deciding whether to put your house on the market now or wait.
Keep in mind when you are ready to sell, I am able and happy to help.
