Some people predict that this year will be a record-breaking year when it comes to house prices. But realistically speaking, 2019 might be the best year for you to put out your home on the market, especially if you are thinking to sell your property this year or the next. According to experts, it will be better to put your house on sale this year than 2020 or 2021. You do not know what will happen in the housing industry for the next few years.
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What can you expect in the housing market in 2019?
Prices growth in the housing industry has slowed down in the second half of last year, with fewer willing buyers entering the housing market. The reason for this is because of the increasing interest rates issued by the government, particularly the Federal Reserves. This year, consumers should not expect potential buyers to suddenly flood the market and drive the prices through the roof, but it is also unlikely to be a problem for a lot of home sellers.
If you purchased your house two or three years ago, still like it and do not want to sell it, go ahead and wait five or six years before visiting the idea of selling again. But if you are planning to sell, consider selling this year or next year. Do not wait for another five years to sell because we do not know what will happen with the economy or with the housing industry five years from now. Here are some of the reasons why you need to sell your home this 2019:
- New and potential buyers are entering the market
- The interest rates are still stuck at the lower end of the spectrum.
- Your property still has higher equity.
- Selling while the price is still high and there are willing buyers is your better option than waiting till 2020.
New and potential buyers are entering the market
As the interest rates are on the rise, some buyers will hesitate to make a reasonable offer on your home or apply for the right mortgage. That is why you need to be ready to see a drop in buyer activity, here and there. And if your home is in the higher price range, you have to expect less interest from the buyers than before.
To know more about interest rates, visit https://en.wikipedia.org/wiki/Interest_rate.
According to experts, a combination of increasing mortgage rates and exceeding price expectation from the buyer’s budget range is what will cause a drop in home buyer activity in the past. But with new housing inventory available still low, even with the increase in interest rates, a lot of buyers are still ready to buy a house and still shop for their dream home.
The interest rates are still stuck at the lower end of the spectrum
The interest rates on mortgages have been on a bumpy road for the past few months, the interest rate for a 30-year lease with fix rate reach the highest level in over seven years in the second half of 2018. However, at the start of 2019, the interest rates are starting to drop down. While it is reasonable to expect the mortgage rates to continue to rise slowly over the course of the year, they will remain a lot lower compared to the interest rate in 1981 by 18%.
Your property still has higher equity
A lot of homeowners who purchased their house during 2008 or after the drop in interest rates, the lower home price will still be in a recovery mode. If you fall in that category, your house equity has increased with every mortgage payment. Every renovation you made to your home, as well as the other houses in your neighborhood, will affect the equity.
The higher equity you have, the more you will get if you sell your home (which will go to the down payment on your next home). And the larger your down payment, the better you will look to the bank or the lenders, and you will get a lower interest rate. Because of this, you will be less likely to increase your monthly payments to the mortgage insurance company.