First-time buyers feel the impetus to purchase because they’re renting and are concerned about being priced out of the market with rapidly appreciating prices and rising interest rates.
Sellers may not feel the same urgency because they already own a home. While they might find it appealing to change homes, they may not feel a pressing motivation causing them to act.
In some cases, sellers are so attached to their low interest rate mortgage that instead of selling, they’re keeping the home for a rental property. This may be a good investment for people with additional cash resources for the down payment and closing costs on the replacement property. But, then again, many sellers cannot find a suitable home to purchase and replace their existing home! Thus, they are choosing to stay "put" because they feel they won't find anything.
Why now is a good time to sell:
- The economy is strong.
- The majority of home sales occur in the months of May through September.
- Many buyers find it preferable to move in the summer because their children are out of school and they can avoid the winter weather.
- Mortgage rates are still very low but are starting to rise.
- Current low inventories in most markets result in higher prices and less competition.