Hey everyone! I’m back to talk to you about why now just might be the right time to sell your home.
When is the right time to sell? It’s a question we as homeowners agonize over. Remember 2008, when the housing bubble burst and the whole economy went into the tank? Of course, you do. All of us were impacted by the great recession in some way, and possibly the memory is so fresh that a lot of us are still skittish when it comes to buying and selling real estate.
Well, I’m here to tell you that the housing market has rebounded in a major way over the last 10 years and demand in 2018 is soaring. If you haven’t given much thought about selling your house, it’s time to change that mindset. Here’s why:
Rates are still low. Mortgage rates have risen marginally from the historically low levels of just a few years ago, but you can still get a 30-year fixed-interest rate of just over 4%. That sure beats the average rate of just over 6% that we saw in 2008. Buyers are going to try to get those good rates while they’re hot because they are expected to rise in 2019 and again in 2020 and before you know it we’ll be up well over 5%.
Demand is high, inventory is low. This is the simple law of supply and demand, folks. When there aren’t enough houses to go around, the prices go up, and that’s just what is happening now. Another rule you can count on is this: builders pay attention. They know when demand is high, too. So you can expect inventory to rise in order to meet demand, and you know what that means.
Prices are rising, but not as fast. OK, so you missed out on selling in 2017, when home prices jumped an average of more than 5%. The good news is that prices will continue to rise in 2018, with the average value of homes expected to increase 3% over last year.
There are a few indicators that would suggest that the people who are interested in home ownership may have more money in their pocket for a down payment, closing costs, mortgage payments...all the costs that go into buying and owning a home:
Unemployment is down. With the unemployment rate dipping below 4%, it appears that people are finding more steady work.
Interest rates are rising. At first glance, this might seem like a bad thing for selling homes, but interest rates tend to rise when the economy is strong and people have more money in their pockets.
Consumer confidence is up. That means people are feeling pretty good about the direction the economy is going. In fact, consumer confidence is at a 20-year high, and compared to 2008...well you can imagine that confidence is positively booming.
Millennials want to buy. Don’t let what you’ve been hearing about the generation and how they prefer to spend their money on experience over things. Increasingly, the millennial generation is one of home ownership, and first-time buyer incentives are helping them find a way to get it done.
There a catch. Here’s the thing...housing markets fluctuate. You don’t need to be a real estate agent or an economist to know that. While what happened in 2008 was an extreme case, the advantage in the real-estate market will shift to the buyer sooner or later. So if selling your home is on your mind, know that the time is ripe to go get that cash! If you didn’t have any immediate plans to sell, it’s worthwhile to at least review that strategy. Talk to your real estate agent. Find out what homes are selling for in your neighborhood. Get a feel for the demand in your geography and make sure you are making the right decision, whether to sell or not to sell.