A client asked the other day, for a primer on timing the sale of their Portland home. They've relocated out of town and, should they move back to Portland, they've realized it wouldn't be to their existing house.
They have great tenants in the property, but the rent doesn't cover their monthly payment, so they are subsidizing the rent by about $300 a month. Should they sell this year, or wait until 2014?
Here, in a nutshell, was my response:
Our current market, close in on the eastside is moving incredibly quickly. The comparable houses to theirs are getting accepted offers with in days, as in 2-3 days, of going on the market. There is high demand from buyers and a low inventory of good homes for sale, so prices are rising.
Interest rates are low, and are being kept artificially low by the Fed. As the economy recovers, (and housing), we expect the Fed to stop keeping those rates low. As rates rise, fewer buyers will be able to afford the home.
We expect prices to continue to rise for the rest of this year, perhaps with some seasonal slowing. But, as prices rise, we will most likely see more sellers entering the market; especially those who previously couldn't get enough for their home to warrant selling. As so much of the current price increases are a result of high demand and low supply, those increases will likely slow.
These particularly clients are most likely planning to sell. The unknowns of waiting, combined with the amount they subsidize the rent each month makes waiting not particularly attractive. They'll likely wait until their tenant's lease is up, or perhaps offer the tenants some sort of consideration for their cooperation in letting us market the home during their occupancy.
If you have questions about your property and situation, get in touch as I'd be glad to chat and give you answers that take your specific factors into account. leslievjones@gmail.com
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