Is NOW The Right Time??
Rising rents, low inventory, and higher sales prices….is now the right time to consider downsizing?
The National Association of Realtor’s Commercial Real Estate Outlook predicts the multifamily vacancy rate will not change over the next year, with rents increasing 4% this year and another 4% next year. This is pushing renters to consider home ownership as a viable financial option now.
Although interest rates remain at historically low levels, available inventory remains soft at best. First-time buyers coming out of rent are faced with very few options in most west side neighborhoods.
Now may be the best time in years to consider downsizing. The average sales price of single family homes is poised to increase this year for the first time since the market crashed, meaning your home may be worth more than you think. As the market continues to recover single family homes will recover at a faster rate than condos and townhomes. This may create the perfect storm for owners considering downsizing. Sellers will be able to command top dollar for the sale of their single family home while taking advantage of soft pricing for condos and townhomes.
Currently there are only 129 single family homes for sale in Lakewood. River has only 78. Fairview has 56. In Westlake there are 102. Bay, just 73. Inventory will remain soft heading into the Spring 2014 selling season.
On the other hand there are many condos and townhomes to choose from at reasonable prices. The median list price in Lakewood is $68,000. Rocky River’s median list price is only $57,000. In Fairview it is $77,000. Westlake’s is $109,000.
So is now the right time to downsize? No two situations are the same. Circumstances may be right for one and not the other. The first step is to know the market for your current home and know how it stacks up against the competition. A great place to start is at www.HomeValuesInLakewood.info. After you complete the brief questionnaire you will be sent a monthly or quarterly report for your home and activity in your neighborhood. This will give you a very detailed overview of what homes are selling for in your neighborhood.
If you think the time is right take the next step and ask a Realtor for a Highest Price Analysis. A professional Realtor will be able to provide firsthand knowledge of how your home actually compares to the home that sold down the street, what repairs you may need to do, and a specific range your home should sell for. You’ll also want to take a look at you your purchasing options. Make sure that there are enough options for your downsizing needs. Otherwise, why sell?
Is now the time? Take the first step…..www.HomeValuesInLakewood.Info.
Chris Bergin is a licensed Realtor with Prudential Lucien Realty in Lakewood and can be reached at Chris@ChrisBergin.com.