It’s no secret that over the past several years, life has been pretty good for sellers. Even if you didn’t need or want to move, you might have been seriously tempted by the housing environment to sell your house anyway. After all, if the neighbors unload their homes for tens of thousands above asking price, it’s hard not to see dollar signs visions.
But all good things have to come to an end, as they say. And you’ve probably heard that in the past years, the white-hot housing market is finally starting to cool down.
So if you haven’t already listed your house, have you missed the boat? Not at all. Here are 5 reasons Beto Sepulveda (Realtor) thinks it’s time to sell in the real estate market
- You’re not going to be the only listing for long
Over the past several years, have the top reason sellers been in the catbird seat? There were clearly not enough homes on the market to keep up with the demand of the buyers. And when a “For Sale” sign went up, you could guarantee that there will soon be a bidding war.
You could have been the only listing in your area and put up your home at a certain price list and then have multiple offers at or above that price list.
This year’s tide is turning. That’s because, albeit gradually, the number of homes for sale is finally growing. Buyers are still outnumbering stocks for now. But if you’re thinking of selling and not wanting to fight with your neighbors, it’s going to pay off if you’re listing earlier rather than later. It will still depend on what area you are in, but we believe that this year you’re more likely to get the offer you expected.
2. You’re just going to make a ‘pretty profit’
In the past seven years, home prices have been on a meteoric rise. The U.S. median home price was $154,700 over January 2012. That number has almost doubled today — to $289,300—and sellers have been pleased.
It’s not that home prices aren’t growing— they just aren’t rising at the frenzied rate of previous years, frequently with multiple offers at or above the demand price. So when it comes to cold, hard cash, even though you might have some more competition as a seller, things still look pretty good for you.
Even if you don’t get a bid above your value, you’ll still have a pretty good profit from being a seller in 2019.
3. Homes below $300 K are in high demand
If you own a home below the national median price of $289,300, there is more good news. Not only does the stock expand at a slower rate than its luxury equivalent, but at those price points, there are more consumers shopping.
If you’re a low-media seller, you’ll see the market of a seller that’s as good as what you’ve seen in previous years — maybe even better. You may still see some deals come in quickly, perhaps even above asking price.
4. New low mortgage rates
Over the past few months, something strange has happened. Experts predicted that mortgage rates will rise — and they were finally ticking up as expected by the end of 2019.
Yet rates on a 30-year fixed mortgage have plummeted since the start of the year, dropping to a new 12-month low of 4.37 percent last week. And those historically low mortgage rates suggest you could have more buyers knocking at your door.
Furthermore, this temporary fall in prices often creates an opportunity for buyers trading. After all, when you sell your home, you’re going to have a good chance of buying another one.
5. The market is being flooded by millennials
Historically, people tend to buy their first home around 30 years of age. In the next two years, we have a whole lot of people turning 30—nearly 5 million. To be a driving force in the housing market, you can count on those millennials.
Millennials like previous generations want to own a house. The market saw thousands of shoppers scooping up homes in 2018—and 2019 won’t be different.
