Most people believe that 2020 is the year that real estate sellers have been waiting for. It is going to be the most crucial year in the United State’s real estate sector since the Great Recession that occurred from 2007-2009.
Therefore, if you are not sure whether to sell your home this year or in 2021, now is the time to do. After all, we do not know how the real estate sector will change next year.
Since buyers are expected to flood the market this year, the prices will be very high, and home sellers will be smiling all the way to the bank. If you are still not sure whether this is the best time to sell a house, here are seven reasons to help you make the sale.
We bought our first house in 2008 during the recession. During that period, both the interest rates and home prices were very low. If you bought your home during or shortly after the recession, the equity of your residence has been going up almost every time you have renovated the house and also every time you have made mortgage payments.
Higher equity means you will get more from the sale of your home, which you can use as a down payment for your next home. By having a larger down payment, it will be easier to find lenders whose interest rates are low.
Mortgage rates are rising, but even so, they have not reached the highest historical level of 18%in 1981. Although mortgage rates seem to follow the Fed’s rate of interest activity, they are also heavily influenced by the property you want to purchase, your financial ability, and the market trend. Therefore, a rise in Fed rates does not necessarily mean that the mortgage rates will go up as well.
It is expected that mortgage interest rates will continue to rise over the next 12 months, but there will not be a sudden increase in 2020. Experts advise those who want to buy homes this year to do so as soon as possible because these rates will go up, and we do not know how market forces will affect this rise.
More New Buyers
It is the right time for us to sell our house, but we also know that some buyers will be scared off by the rising interest rates. As a result, sellers should be ready to see the buyer activity dropping occasionally. You should always look at the price range of homes like yours before setting the selling price because setting your price at the higher end will reduce the buyer interest.
In recent months, the homebuyer activity has slowed down due to home prices being more than a buyer’s budget and the mortgage interest rates going up. On the other hand, the housing inventory still remains low, and any buyer who is ready to buy a home can still shop around for the perfect fit.
Millennials are especially coming in numbers to buy homes for the first time. This means that even with high-interest rates, buyers will still remain active. If you are a younger person looking to buy your first house, this is the right time if you have the resources to help you make wise financial investments.
The Demand for Under $300K Houses is on the Rise
If you are wondering how to sell a house that costs less than $300,000, do not worry as the demand is still high for below-median-price homes. One benefit of such a home is that its inventory increases at a much slower rate compared to that of luxurious homes. Since these homes are still in demand, you could receive many offers, some of which are even above the median price.
More Sellers Will be Listing for Long
Wondering, should I sell my house now or later?
In the past, the number of homes on sale was never enough for the many buyers. This is why a bidding war resulted from any home sale adverts. The benefit of this was that a seller could get multiple offers at the set prices and others above that price.
Although the inventory is still lower than the buyers, there is a slow but steady rise in the number of properties available for sale. So, if you intend to sell your home, it is best to do it now because the inventory could soon increase at a faster rate than in the past. This means that you will not be the only listing; there will be more sellers in the future.
More Days on Market(DOM) Shows Housing Slow Down
DOM is used to show how long a property stays in the market before it is purchased. If a house exceeds the average DOM, buyers start to wonder if something is wrong. It also shows that fewer people are entering the market in search of a home. 2018 saw a rise in DOM from 36-42 days.
Some areas are registering a continuous increase in DOM. The shaky stock market and increased mortgage rates have indeed led to fewer buyers entering the market. However, they are now able to choose from a variety of homes that are being put up for sale and remaining there for many days.
Lending Criteria Is Changing
The current Banking Royal Commission has led to tighter lending criteria. This, in return, has directly affected how property investors secure home loans or get the amount of loan they would need to buy a home. Luckily, there is a possibility for the initial changes to be loosened in 2020.
This move would have positive effects on both sellers and buyers.
Best Time To Sell A House
2020 continues to be a home seller’s market year. However, this may not last forever because of next year’s housing predictions. If you really want to sell, this would be the best time to sell a house because of the high home values and low-interest rates.
Contact us today for more information.