Upsizing Your St Cloud House Now Or Later

Upsizing Your St Cloud House Now Or Later

Sometimes what logic would seem to dictate and what reality shows don’t necessarily wind up leading to the same conclusion. That might well be the case when considering upsizing in today’s housing market. With prices on the rise, St. Cloud homeowners who would like to upsize to more spacious digs may be inclined to shelve plans for the time being.

It’s widely the case that this spring finds listing and sales prices on the rise throughout the nation—news which would encourage the first part of the plan, the selling part. But the same trend works to discourage the follow-through—since buying could likewise prove to be too expensive.

But that abstract reasoning against upsizing might not work out as expected in every marketplace— at least in some cases. The details have to do with what’s going on in different market segments. And there’s a second factor at play that could prove decisive.

The latest national sales figure confirm that, as CNBC states, “the supply shortage is the worst on the lower end of the market”—the selling side for would-be upsizers. Sure enough, there is further confirmation that price rises are steeper in that segment. The latest Trulia.com study finds median starter home prices are up a whopping 9.6%. That isn’t surprising, given that segment’s 19% drop in inventory from a year earlier. Although it’s also true that at the other end of the market “premium” inventories were down—they dropped by less than 6%. The disproportionate differences in supply explain the steeper price gains for more modest properties.

The second factor is in mortgage interest rates. When rates rise and monthly payments go up, buyers find it harder to qualify for the more expansive properties. With more buyers competing in the part of the market where inventories are shrinking fastest, sellers benefit. Especially if interest rates do continue to rise as predicted, the financial incentives for upsizing sooner rather than later are clear.

Of course, no matter how pronounced national trends might be, at best they can only provide a rationale for why some strategies might be more rewarding than others. When it comes to a major undertaking like upsizing, my clients can rely on the latest real market data to inform their ultimate buying and selling decisions.

  


Five Locations To Serve You!!!    

St. Cloud (320) 259-4554

Litchfield (320) 298-1140

Hutchinson (320) 455-9127

Milaca (320) 983-3555

Maple Grove (763) 565-2000



Image result for now or later


Noel Johnson Headshot
Author:
Phone: 320-980-3100
Dated: April 19th 2018
Views: 2
About Noel: Passion for investing in real estate brought me to create Premier Real Estate Services in 2002. Ten ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Upsizing Your St Cloud House Now Or Later - Sometimes what logic would seem
St Cloud Homeowners Nearly Celebrate Tax Day 2018 - The concept of “Tax Day”
Buying Your First St Cloud House Takes A Game Plan - Once you’ve settled on the goal
Why St Cloud HOAs And Condo Associations Differ - If you have ever checked out the

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Dave Olson
550 25th Avenue North
St. Cloud, MN
320-266-0031


Other Locations