As you know, The FED has dropped rates substantially. In the next Fed Open Market Committee (FOMC) Meeting, which concludes on January 30, the markets are anticipating there will be another 1/4 to 1/2 point drop in the Fed Funds rate. (Meeting Minutes are to be released on January 30th, 12 Noon, Mountain Time.)
Click here to see the latest monetary policy press releases from the Federal Reserve Board of Governors.
Now, that initial rate drop and any subsequent rate drops will likely translate into lower rates in the mortgage market. That's causing the real estate market to pick up -- substantially. Buyers who waited out the higher rates are being rewarded now with lower payments.
But, what if you have a house to sell? How do you take advantage of this market? It's simple. You list...and list now.
Were you aware that the average days on market in Denver, which is comparatively better than a lot of other markets - even those in California - is about 110 days?
Assuming 110 days of marketing time for a well-priced home, when do you think you would close on the sale of your present home, if you listed on February 1, 2008?
Is the answer:
- April 1st?
- May 1st?
- June 1st?
- July 1st?
- July 5th?
- July 7th?
If you guessed #6, then, based on the average transaction, you're right!
Believe it or not, the process of selling a well-priced home under average conditions would lead to the following timeline (your sale may take more or less time, based on pricing, condition and rates):
- Listing - February 1, 2008
- 110 Average Days on Market (when the first offer is typically accepted after an average of 20 showings) - May 21, 2008
- Now, if there are a couple of weeks of negotiations, that can extend to the "Under Contract" date - June 5, 2008
- Assuming an average 30 days while under contract, closing is - July 5, 2008 Oops! That's a Saturday!
- So, closing, based on the average transaction, would be - July 7, 2008
So, if you are thinking about upgrading your home this Summer, when do you think you should get on the market?
It's possible that waiting 2 months to decide could cause your closing to occur after Labor Day. However, what happens if the "perfect buyer" for your home needs to be settled in time for school? Well, you may have missed them entirely!
As 58% of transactions in 2007 occurred in Denver between March and September, getting listed now may offer the highest probability of achieving your goals.
As always, whenever YOU are ready, I am here Bringing The World Home To You™
And, if you know of someone that is looking to buy or sell, I am NEVER too busy for any of your referrals.
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