Thinking About Selling Your House? Here's Why You Should Do So Sooner Rather Than Later

Although it's currently a great time to sell a house in many cities, the favorable market conditions are transforming and giving more power to buyers.

There are two data points that demonstrate this. The first is the supply of existing homes for sale. Although this number is hovering around its decade low, we've seen it tick up in the two most recent months -- or, more specifically, the two most recent months for which we have data.

If this trend gains momentum, it could swing the market dynamics in favor of homebuyers. This is because, as in any other market, the greater the supply of available homes, the lower the price.

On this note, the second data point concerns home prices. Consistent with a tight supply, we've seen prices increase by double digits on a year-over-year basis for 11 consecutive months. On a month-to-month basis, however, the ascent is stalling.

As Motley Fool contributor John Maxfield discusses in the following video, this leads him to conclude that prospective home sellers would be smart to get the ball rolling on the process sooner rather than later.

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  • Report this Comment On April 13, 2014, at 10:52 PM, airjackie wrote:

    Well selling a house isn't easy anymore as even some owners don't know if their homes are not in stocks. The Banks with no regulations by Congress decided to put mortgages in stock form getting 10 of thousands investors using the deeds. Many learned the hard way as they have their homes taken. One lady sold her home and the new owner fell behind in payment 4 years later and the Bank took the lady to court only to learn the first owner still owned the home because of the banks incorrect processing. Millions of investors have lawsuits against the banks. The only safe home to buy is a new home built with no mistakes by Banks.

  • Report this Comment On April 14, 2014, at 6:08 PM, kentito24 wrote:

    This is hugely over-simplified. The housing market is much more regional than any other investment, and the only that if you sell it, you have to replace with something else. If I sold my house right now, I would have to buy something else just as expensive, or quit me job and leave the area. Neither one makes much sense.

  • Report this Comment On April 15, 2014, at 3:10 AM, duudaa wrote:

    This benefits bankers and real estate agents not home owners.

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John Maxfield

John is The Motley Fool's senior banking specialist. If you're interested in banking and/or finance, you should follow him on Twitter.

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