Large declines in the price of homes coupled with record low interest rates have dropped housing affordability indexes to the highest levels seen in decades. Rents have also been rising, bringing the home price/rent ratios to levels not seen in over a decade.
With affordability at these levels, it's easy to see why households polled in the Thompson Routers/University of Michigan's survey of consumers during the month of August replied that most consider this a good time to buy a home. Those responses were the most positive since 2004.
In the survey, households were also questioned on whether or not they consider this a good time to sell a home. Most responded that this was not a good time to sell.
A lot of the reasoning behind why it would be a bad time to sell is one of the reasons why it's a good time to buy – home prices are still below what most buyers paid for their houses. The decrease in home prices over the past several years, prior to late 2011 and 2012, have left many homeowners with little or no equity in their homes. A large number of these homeowners are underwater, meaning that they owe more on their mortgage than their house is worth.
Homeowners that have little or no equity will not be able to pay for a down payment on a home if they sold their current residence and underwater borrowers would owe money if they sold their home for the current value.
Tips for Selling Your Home:
If you find yourself in a situation where you must relocate and sell your home, there are many things you can do to help prevent your listing from sitting on the market too long, while getting close to your asking price.
Curb appeal – First impressions are the most lasting, so get out the lawn mower, trim the hedges, fix eye-sores, and make your home inviting from the moment potential buyers show up.
Remove clutter – If you have a lot of furniture, now is the time to get it out of the house. If your bookshelves and end-tables are cluttered, packed that stuff away. And remove all personal effects, such as family pictures, children’s artwork, and toiletries.
Stage the home – After removing everything but the bare minimum, give the house a thorough cleaning and begin to stage the main areas of the home. For example, leave a book on the coffee table, add bright bulbs to lamps and leave them turned on, and add place settings to the dining room table, all to help potential buyers picture themselves as the owner.