Why Your Home Should Already Be Listed For Sale This Spring
Catch the Housing Market at the Perfect Moment, and Sell Your Home in 2019
For many homeowners and real estate professionals, 2018 was a bit of a tease for the housing market. The Federal Reserve keeps hiking interest rates, home prices are rising at a slower pace, and there may even be a recession on the horizon. If you’re weighing your options to sell now or next year, don’t play the waiting game! 2019 is the perfect balance of circumstances for selling your home, especially if you’re planning to buy another one.
Spring is here, and it’s right when buyers start flooding the housing market. Because of this, now is the time to prep your home and get a listing up. Still not sure? Here are the top three reasons why it may be the perfect time to sell your home in 2019.
2019 Mortgage Interest Rates Are Still on the Low End
But interest rates are definitely increasing! Mortgage interest rates have been rising since 2017, after years of being at a standstill. In fact, the Federal Reserve hiked interest rates four times in 2018. As a result, some buyers are stepping back from buying, which increases the number of days that some homes are on the market.
The Feds have also expressed plans to further increase interest rates throughout 2019. A sudden jump in mortgage interest rates is unlikely, though you should be ready to see rates continue to climb. While mortgage rates set by lenders don’t directly reflect the Fed’s set rate, they do echo changes in the long run. In a nutshell, waiting to sell will likely mean your house will be on the market longer, and that you may receive fewer offers.
Home Prices Are Still on the Rise… But Slowly
Throughout 2017 and into early 2018, home prices jumped a whopping 10 percent! The number of homes sold in 2019 is still expected to rise, though at a much slower pace. The latest Housing and Mortgage Market Review estimates home prices will continue to rise, with annual increases of 2–5 percent This is especially true in urban neighborhoods and cities favored by Millennials.
However, that growth will continue to slow down and possibly flat-line in some areas, particularly in smaller metro areas. Overall, this is great news for sellers. If you sell your house before 2020, you’re still likely to make a great profit. However, the combination of interest rate increases and overall economic uncertainty has been enough to discourage many buyers who’ve been on the fence about buying a home.
Selling Now Will Be Better Than Waiting Until 2020
With the housing market slowing down, you may be tempted to wait it out until next year, but sometimes it’s best to go with the devil you know. In a recent survey of 100 U.S. economists and real estate experts, almost half expect the next recession to occur in 2020. Another 14 percent believe the recession will hold out until 2021, and 24 percent expect the recession sometime in 2019.
Whether you believe the recession is close at hand or a long way off, current patterns show that a sudden upswing in the number of buyers or home prices is very unlikely to happen in the near future. Real estate markets tend to operate on a cycle, from a seller’s market to a buyer’s market with a period of balance in between. 2019 reflects that period of balance, and time is of the essence.