There are few that envision 2019 being a record year for home prices, but 2019 might actually be the best time for selling your home, especially when compared to years that will follow.
“Especially if you’re on the fence about selling this year or next, Nick Ron, CEO of House Buyers of America, recommends going with the devil you know rather than the devil you don’t. I think it’ll be better than 2020 and 2021 – who knows what’s going to happen in those years, Ron says.”
Home price growth slowed during the second half of 2018. Fewer buyers were entering the market, partially due to increasing interest rates. In 2019, consumers shouldn’t expect buyers to flood the market and drive prices too high, but it is also unlikely to become a crisis for sellers.
If you bought your home in the past few years and are still happy where you are, then you can wait another five years before thinking of selling. However, if you are considering selling soon, don’t play the waiting game and put your home on the market in 2019.
Below you will find a few reasons to sell your house in 2019.
1. New buyers are still entering the market – The biggest group of buyers will be millennials who are mostly buying homes for the first time. According to a Harris Poll survey of 2000 U.S. adults ages 18-34, one fifth plan to purchase a home in the next 12 months.
2. Interest Rates are still low – Mortgage rates are currently rising and reached 4.87% in November for a 30-year fixed rate mortgage according to info from Freddie Mac. Even though rates are the highest since February of 2011, they still are much lower than the historic high of over 18% in 1981. A sudden big increase in mortgage rates is not likely in 2019. According to John Pataky of TIAA bank, “We do expect over the next 12 months that mortgage rates will continue to drift higher,” he says.
3. You have high equity – Homeowners who purchased during the recession or just after have benefitted from historically low interest rates. If you are in this category your home equity has risen with almost every mortgage payment, renovation, and all other homes nearby that have sold for a higher price. The higher equity you have in your home the more you net from a sale, this can go towards the down payment on your next house.
4. Selling in 2019 vs. 2020. – If you are trying to decide whether or not to put your house on the market in 2020 you should do so sooner than later. A recent survey of 100 U.S. real estate experts by Zillow showed that half expect the next recession to occur in 2020. Another 14 percent believe the next recession will hold out until 2021, and 24 percent expect the recession to occur earlier at some point in 2019.
Source: U.S. News & World Report
Stachel Law’s real estate clients include lenders, brokers, investors, consumers, sellers, and real estate agents, all of whom are counseled and represented throughout every step of a legal matter. The firm provides clients with extensive experience in complex real estate transactions and litigation.