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9 Reasons Why 2016 is the Year to Sell

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Longboat Key home for sale

Longboat Key home for sale

The region’s housing market performed exceptionally well in 2015. With that in mind, below are nine reasons why there has rarely been a better time to sell a property.

1. Property sales have increased
Last year, nearly 28,000 properties were sold throughout Sarasota, Manatee and Charlotte Counties; a 7% increase over 2014—itself an exceptional year; and a 36% increase over 2011.

2. Median sale price is up
With surging demand continuously bumping up against a persistent shortage of available properties, the median price for homes throughout the region rose 15% during 2015—more than four times the region’s normal rate of annual property appreciation.

3. Average days on the market have gone down
With so many buyers vying for properties, the time it takes to sell a home in Southwest Florida lessened dramatically in 2015.  As of December, the average property was only on the market for 76 days, compared with 95 days a year ago. Indeed, inventories have remained so diminished over the past 18 months that once a new property hits the market, it is immediately subject to massive buyer interest; and when priced competitively, often subject to multiple offers.

4. Luxury buyers are back
Sales of high-value properties throughout the region were also up considerably in 2015, a sure sign that luxury buyers are back in the market and ready to commit.  Transactions involving properties over $1 million were up by 16% over 2014; and by 86% compared with 2011.

5. Luxury properties are selling quicker
The time it takes to sell luxury properties also lessened considerably in 2015.  As of December, the average luxury property—when priced competitively—was only on the market for 179 days; a reduction of 76 days, or 42%, compared with a year ago.

6. Home sales in Southwest Florida are outperforming the rest of the country
Our market is currently outperforming the U.S. as a whole.  For example, while year-over-year sales throughout every major region of the country fell in November by 10.5%—their slowest pace in 19 months—sales throughout Southwest Florida rose by 2.4%.

7. Our region has the highest concentration of baby boomers
Meanwhile, in late December, Headlight Data—a Texas-based data aggregator—announced that the Sarasota-Bradenton-North Port metropolitan area enjoys the highest concentration of baby boomers of any mid-sized metropolitan area in the U.S.   No doubt this helps explain why so many homes here sell for cash.   A large percentage of baby boomers are sitting atop a lifetime of accumulated home equity as well as other profitable investments.   Thus when they sell their homes in other markets they are in an excellent position to pay cash for properties here.

8. Mortgage loans are readily available
Still, buyers wishing to finance will be glad to know that mortgage loans are readily available for those who qualify.  Moreover, new mandatory disclosure procedures adopted in late 2015 now require greater transparency on the part of lenders in order to protect borrowers from agreeing to loans they can’t afford or don’t fully understand.  In exchange, borrowers must provide all documentation requested by the lender in order to demonstrate their ability to repay the loan.

9. Interest rates remain low
If obtaining a mortgage is your goal, now is definitely the time to meet with a professional from MSC Mortgage to discuss options and begin the process.  Interest rates remain low in spite of the first increase in nearly a decade; but as many as three additional increases may be in store for 2016.

If you are considering selling your home in 2016, then learn why  selling your home with Michael Saunders & Company makes sense. Our experience, prospecting and leadership in luxury sales in the greater Sarasota area makes selling your home with us a smart move. Discover more about the Michael Saunders & Company selling advantage and our real estate agents before making your move this year.

Looking forward, rising home prices, low inventories, additional hikes in interest rates and volatility in the stock market may give pause to some buyers.  On the other hand, volatility in the markets could motivate the majority of potential buyers into moving their money into our appreciating property markets.  Only time will tell.

Happily, you don’t need a crystal ball to know that there has rarely been a better time to sell a property.  Our market is enjoying one of the largest and most committed pools of buyers it has ever had the opportunity to serve.  The economy is at full employment and doing well, buyer confidence is high; and their only want is for more housing options to choose from.

 

Interested in selling your home? List with us today.

9 Reasons Why 2016 is the Year to Sell was last modified: January 24th, 2017 by Michael Saunders

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