If you're watching the news about rising interest rates, you may be shaking your head and thinking you missed your window to sell your home at a sizable profit. Our real estate agents would like to assure you this is not the case. Here are several reasons why Plymouth homes for sale are still fetching excellent prices.
- Not all buyers are concerned about interest rates.
That may seem to be an absurd statement on its face, but many buyers are also recent sellers. To avoid capital gains tax, they need to re-invest in another home. If they are downsizing, they may have adequate cash to avoid financing altogether or dramatically reduce the balance at the time of purchase. Even though interest rates are rising, many buyers are accelerating their purchasing plans to capture a reasonable rate before reaching higher levels.
- Housing inventories are low.
The market is not as competitive as it was in 2021, but there are still fewer homes for sale than buyers. Multiple offers mean sellers can still set high asking prices while remaining competitive. Buyers waiting for prices to come down may find themselves paying much more for rent than anticipated and don't want to see their savings dwindle. Selling prices continue to rise, over 2021, by about 13%. Available homes fell by 28%. This means your equity also remains high.
- The workforce is changing.
As many corporations have discovered that offering their employees the opportunity to work from home saves them a lot of money in office space, more workers choose that option. Those employees often seek more comfortable workspace in the form of home offices and, subsequently, larger houses. Americans are spending more time at home and seek entertainment space as well as larger, better-appointed kitchens. They are exchanging their minimalist condominiums for spacious homes to accommodate those desires.
- New Hampshire offers a great tax climate.
With the absence of sales and income taxes, as well as a host of others, both corporations and individuals are attracted to the area for financial relief. Additional homebuyers contribute to the low home inventories that are bolstering sale prices. The unemployment rate in New Hampshire was 2.3% as of April 2022, compared to the national average of 3.6%. When you add a low crime rate to a healthy job market, you are looking at attracting home buyers from across the country.
- Sellers can forgo some repair work.
Many buyers have been looking for a while for a home that fits their lifestyle and budget. They are often willing to take care of cosmetic details themselves, eliminating the need for sellers to paint and upgrade. That helps the seller on two fronts: minimizing their cost of selling and shortening the time necessary to list the house. This also means the buyers can decorate according to their tastes instead of the neutral color palettes sellers normally choose.
If you're considering selling your home but still have additional questions, contact us. Our friendly professionals will be happy to guide you toward the best decision for your financial plan.