The Inventory Shortage
Almost every real estate-related call or meeting I attend, article I read or discussion I have makes mention of inventory shortages even in Manhattan and other larger cities that were negatively impacted by a desire for more space and work-from-home-suburban focus. The reality of under-building for over a decade has hit home - pun intended - and now with fewer options for buyers, prices are often increasing beyond bank-lending standards, further exacerbating home-affordability.
Here are a few good reasons to sell today:
- Dealing with markets as we know them is often best: what may come next month or next year is a realtive unknown. Right now we KNOW we have enormous demand, low interest rates (that are rising) and a deep desire to move.
- Emptynesters that lost their audience for a while for larger home have a brand new, potent audience.
- Capital gains taxes may change as we realize the enormous debts we have acrued may have to be reduced or paid back....cashing in on those gains now at lower tax rates may be invaluable.
- Down-sizers may have to pay more for their smaller 'replacement' home, but the percentages applied to the gains of their larger home will outweigh this. And if they have equity they may have more power as buyers in the competitive environment.
- Those whose homes may need a renovation may save lots of time and aggravation selling and moving into a gut-renovated or brand new home.....and they will be able to finance the entire package at low interest rates.
- What may appear as expensive right now could be MUCH more expensive later as inflation kicks in and people realize just how much more expensive it is to build. Labor and material costs are soaring.
- If inflation rises notably, we could expect interest rates to follow suit, which could impact pricing and activity negatively.
If you have been thinking about selling and are curious about the process, reach out today and work with the team that can deliver a seamless experience.