Every year, we set new year resolutions. Often one of our goals is to buy or sell a house. You want to move into a new place or get rid of a house you no longer want. However, in both cases, you want market conditions to be in your favor. Sellers want to sell the property for the best price possible, and buyers want to get the house for a reasonable price.
That means, when buying or selling a house, you need to search for market conditions. Are you selling in a seller’s market? How much are the mortgage rates? What are the average ‘days on the market’ in your local area? How soon can you expect to sell the property? Should you sell your home in 2019?
This article will answer these questions. We can’t decide for you, but we’ll let you know the top 3 reasons as for why you should sell your home in 2019.
First of all, avoid listing your property if you had just bought it. Selling might not bring a good ROI if you purchased that house in 2017 or 2018.
2019 is not going to be the best year for selling your home. It is going to be a good year when we see the future, but we don’t recommend selling property just because 2019 is the right year. New homeowners should delay this idea unless they are moving out or are facing financial issues.
As we know the history, the Fed mortgage rates were highest in 1981. The mortgage rate at that time was 18.83%. In our era, mortgage rates are nowhere near the 18% mark, but that doesn’t mean mortgage rates will always remain low. The needle is shifting from the 4% mark, and as we explore 2019, we can only expect the rates to increase. Going forward, the fed funds rates will keep rising, and that means, buyers will face difficulties when purchasing a property.
As a seller, interest rates don’t have a direct impact on you. However, since buyers can’t obtain financing, it will be difficult to sell a house. Since the mortgage rate is only expected to increase, it will be better to sell the property sooner than later.
Housing inventory was expected to improve in 2020-2021. However, looking at the statistics, it doesn’t seem to be the case. Builders are not developing homes because of rising construction costs and uncertainty of the future.
The number of real estate transactions didn’t reduce in 2018. Despite the shrinking inventory, we saw people buying homes. However, sooner or later, we’ll see a decline in the number of sales. The transactions will be limited when we have fewer homes on the market. Increasing interest rates will also contribute to this problem. When you sell a house, be ready to experience some delay. Rising interest rates and strict mortgage lending guidelines are making it difficult to buy a house. Fewer buyers will be out there shopping for your home. When we have to choose between 2019 or 2020, we’ll say that 2019 is the ideal time for selling your property.
The stock market has given us a hint. The change in monetary policy and inflation are triggering a financial recession. Experts have been predicting this situation for a long time, and if the mentioned facts are correct, 2020 will be the beginning of an economic slowdown.
It might not be as bad as the previous one. Since the mortgage lending standards are right, we can expect that the recession might not be a traumatic event for the housing industry. However, we cannot say for sure. Looking at the statistics, the advice is to settle your finances before the next year. If you are planning to sell a property, take action in 2019 because 2020 might be the year of uncertainty.
Click here for more information or give us a call if you want to sell your home in 2019.