Why 2019 is a Great Year to Sell Your Home
While unemployment rates are low and the economy seems stable, nothing gives people more anxiety than buying or selling a home in any market, no matter how strong it seems. 2018 was a great year for buyers with interest rates staying low and property values steadily climbing, but what about 2019?
If you are considering selling your home this year, see below for some great reasons why 2019 is going to be a seller’s market, and how you can jump on it quickly to get yourself in your next home quickly and easily.
Housing Inventory remains low. Even if with interest rates steadily rising, the lack of choices for buyers in popular areas means that even the higher-end of the pricing in neighborhoods will get at least a few nibbles. Millennials will be the biggest chunk of new buyers entering the market, as they prepare to invest in their first homes after establishing their careers in the last few years.
Interest rates remain on the low end. While almost 5% may seem steep compared to previous years, it’s nowhere near the high-interest rates of the 80s where homebuyers could expect to pay as much as 18% in interest alone. These interest rates are not only affordable, but buyers are now accessing less traditional financing options like hard money lenders to avoid the long mortgages that have become common. They can secure financing in as little as a week, and have their home paid off in 6 months or so using a bridge loan from a direct lender with interest rates that aren’t much higher than bank lenders.
Most sellers have a good amount of equity. With a lot of sellers having bought their homes while interest rates had lowered but so had housing prices, homes have risen steadily in value over the years. This means that payments on the mortgage went much farther, and gathered equity in the home faster than previous years. This is a great thing when sellers are looking to put a substantial down payment down on their new home.
Some experts believe the recession is imminent in 2020. Over half of real estate professionals surveyed believed that while no big changes are expected in 2019, a recession is most likely around the corner in the next year or two. Although no one can predict the future, there are definitely signs that real estate agents know better than the average person that would lead them to believe that it’s a great time to sell a home, and now is better than later.