Every year homeowners are given predictions for the real estate future. These are often the hunches and gut feelings of experienced realtors and market analysts, or predictions based on trends without connection to real data.
Forecasts for the 2019 market are conflicted. Some predict a positive trend and others see crashing stock prices and financial instability. One thing most strategists agree on is an impending recession in 2020. Perhaps 2019 isn’t better than selling in the past, but it seems better than selling in the future.
US mortgage rates are rising, having begun the upswing last year. Experts predict that the latest mortgage rates might hit an all-time high by the end of 2020. What we know for now is that selling your home this year means that you can avoid next year’s higher rates. This saves you from the new higher rates affecting pricing, your buyer’s purchasing power, and your ability to finance your next home. Mortgage rates are still in a historic low, but they won’t be for much longer, with a rate of 5.5% predicted later this year.
A 1% increase on the 30-year fixed loan reduces the pool of eligible buyers by up to 20% in major cities. With fewer buyers able to secure financing, houses will sit on the market longer and pull in lower sales prices. The growing real estate market could not have continued to prosper forever. This is all part of the change of direction we’re experiencing. If you’re hoping to buy, doing so soon will help you find financing. Also, if you’re looking to sell, doing so soon will help you find buyers.
A recent lack of inventory is drawing new listings out of the woodwork. As we continue into 2019, more and more sellers will come to market to catch the latest mortgage rates and avoid the 2020 market, which promises lower inventory and higher interest rates.
If you’ve recently considered selling your home, and not done it yet, 2019 is your year. It’s not too late to sell in Spring or Summer, when we expect the market to be most active. Call the Laura Wucher Real Estate Team today to get your questions answered about preparing to sell.
