And economists are saying that just because you can't sell without taking a loss on your current home doesn't mean it isn't still a smart time to make a move. If you have the resources to plunk down money at closing, taking a loss now could be a smart move leading to future gains.
Here are six reasons now could be a smart time to trade up to a new home…
- If you are moving up, the loss you take on your current home will likely be offset by savings on your new home… both in purchase price now and in future appreciation.
- Because of historically low interest rates, the increase in your monthly payment may be modest compared to the benefits of a much nicer home… as well as savings on total interest payments over the life of the loan.
- After holding back for the last few years, more traditional sellers with homes in good condition are coming back to the market… giving more good purchase options.
- Foreclosure properties are coming to the market in better condition than in the past… with cleaning, renovations and even staging now appearing in some foreclosure listings.
- It is a buyer's market in the upper price ranges… meaning good choices at good prices.
- Appraisal guidelines have been readjusted again… this time changing some of the guidelines that derailed many sales in the past year because of the appraisal process.