Sunday, April 28, 2019 / by Dixie Simon
You’ve been watching the market and you are tempted to list your home because you have seen home sell very fast and, often times, over asking price! If you are in a spot to buy a home, then you might be hearing of these record low-interest rates, massive amounts of home options and inventory, and great loan options for first time home buyers. While you can’t have both a buyer and seller's market, there are some reasons why both selling and buying in 2019 may be recommended.
Let’s focus on why 2019 may be the right time to make the decision to buy a home. In recent years the market had more buyers than inventory listed for sale. This created a “Seller’s Market” and often homes would sell for thousands over asking price as buyers essentially were in a “bidding war” to get the home. This is changing as more homes are being listed. However, the increase in available homes seems to be in the mid to higher-end market and the available inventory for entry-level homes is still down. Because of this, if you are a first-time homebuyer, working with a great Agent and having your pre-approval completed will be beneficial so you are ready to submit your offer right away when you find the right home. Being prepared could help spare you the heartache of losing out to another buyer who is ready immediately to submit their offer.
Another reason buying in 2019 may be recommended is due to interest rates. In recent years the interest rates for home mortgages have been low and these are now starting to trend upward. As we head into 2020, home mortgage rates are expected to rise even more, so getting your home purchased sooner rather than later makes good financial sense. Securing a lower rate can save homeowners thousands over the course of the loan and affords more home for the monthly payment. This alone is a great motivation for getting your purchase completed soon!
If you are in the opposite position and are considering selling your home in 2019, some of these same arguments for buying may also be the reason you should list your property. Those who are in the market to purchase homes have likely been watching the market and know that interest rates are trending upward. They have a sense of urgency to get their purchase completed before rates continue to increase.
In the past few years the market has had more buyers than sellers and this created the “Seller’s Market” as mentioned earlier. If you get your home listed soon, you may be able to still take advantage of the market not being flooded with more inventory than buyers which creates what is known in the industry as a “Buyer’s Market”. There are now more homes becoming available but the increase tends to be in homes listed in the mid to high-end market. Inventory levels below the national medium market price of $289,300 remain low. It is important to note that there are a significant number of Millennials looking to purchase their first homes and this trend alone is creating demand in homes priced under $300,000. These market trends can benefit you both as a seller and potential buyer in 2019. If the home you wish to sell is a good “starter home”, priced right and marketed correctly it should sell more quickly and you would then also have more selection in homes available in the next market level if you are upgrading. Selling now would give you the potential advantage in both markets and you would also benefit from interest rates being lower than they are expected to be later this year and into 2020.
Whether you are looking to buy or sell, or perhaps both, it is important to know that there are significant changes taking place in the market. Understanding these and using them to your advantage will be important. Finding a Real Estate agent who is knowledgeable, understanding and savvy on the inventory in your market will help your buying and or selling transaction much more positive and enjoyable.
Happy to Help!