Probably. It’s been forecast that 2019 will have record-breaking prices for homes.
2019 Housing Market Forecast
Home prices dropped in the second half of 2018. Due to the increased interest rates the Federal Reserve issued, the number of new buyers dropped. Therefore, fewer homebuyers will enter the market this year, which means no skyrocketing home prices; the market should also not experience a crisis for home sellers.
2019 is the year to let go of your property. Otherwise, you might have to wait years for these favorable conditions. Here’re four reasons to sell your home this year.
4 Reasons to Sell Your Home in 2019
New Buyers are Still Entering the Housing Market…
…for now. But expect a drop in buyer activity soon. With rising interest rates, only some buyers will make offers on homes or apply for mortgages this year. Buyer interest will drop, especially for high-end homes. Reduced buyer activity in the previous months has been attributed to increasing mortgage rates and rising prices of homes, surpassing the budgets of home buyers.
Buyers will still make purchases from the available low inventory, however. According to the National Association of Realtors, millennials make up 36% of homebuyers, and they are expected to buy homes this year. According to the Harris Poll survey, about 2000 millennials are expected to buy their first homes in the next year.
Although houses can sit on the market for days or weeks before selling, buyers are still active on the market. That means you can sell your home for a profit.
Lower Interest Rates
Although mortgage interest rates are expected to rise, they’re still lower than the historic high of over 18% in 1981. Your financial status, prevailing condition of the market, and the properties for sale influence mortgage rates, despite being dependent on the interest rate of the Federal Reserve. But an increase in the Fed’s rate doesn’t necessarily increased mortgage rates. If you’re looking for the best deal and lowest interest rate on your next house, this is the time to sell.
Homes bought during the last recession benefitted from low interest rates that continued into 2015. Those homes now have high equity, which means you can sell your home at a high price and use the money as down payment for your new home. High down payments reduce mortgage interest rates, and make you look better in the eyes of lenders. It also reduces your chance of high monthly payments to a private mortgage insurer.
The Next Recession is Expected to Occur in 2020
According to a survey by Zillow, an online real estate information company of economists and real estate experts, the next recession is expected to occur in 2020 or 2021. Therefore, if you plan to sell your home in the near future, 2019 is the time to let go of the property. There’re no sign of sudden home price or demand spikes in the near future.
Contact us to find out more information about listing your property or selling your home in 2019.