Whether you’re starting a family, relocating for a new job, or downsizing upon retirement, there are a number of reasons that drive people to buy and sell their houses. No matter your personal circumstance, you’re likely to go through the process of selling your house at some point. While there is no way of determining the opportune time for selling your home, a number of indicators suggest that this is a great year for putting your house on the market.
Let’s take a look at the reasons why this year seems to be a great one for sellers.
Mortgage Rates Are Declining
June 2019 marked a 17-month low for mortgage rates, with 30-year mortgage rates sitting at 4.06 percent, according to Bankrate reports. This is a significant drop from the 4.29 percent seen just a month before, which is an even more significant drop from the 4.7 percent seen a year ago. As for 15-year mortgage rates, they are currently hovering at 3.41 percent, down from the 3.55 percent seen a month earlier.
This decline in mortgage rates will spur an increase in applications. This increase has been evident since June 2019, when mortgage applications increased by 1.5 percent from the previous month. This decline has offset real estate experts’ concerns that economic uncertainty will prevent people from buying houses.
Decreased Mortgage Rates Cause Increased Competition
As more people start looking for homes following the drop in mortgage rates, competition in the market will increase. While this will result in more demand, it may also convince more sellers that this would be an opportune time to place their houses on the market.
This increased competition will result in fewer bids on your house, and the longer that the house remains on the market, the more you may be inclined to lower the price. Now is the opportune time to put your house on the market, as there is enough demand for houses but the market is not yet too competitive.
Next Year May Prove Too Late
Both financial and real estate experts alike are expressing their concerns about a potential recession coming in 2020.
One survey including 100 real estate experts found that half of the participants expect a recession to hit sometime in 2020. Of those respondents, 24 percent believe that the recession could come as early as the end of 2019 while 14 percent reckon that it will only come in 2021. While there are some differences in opinion, most experts believe that a recession will hit in the next two years, meaning that it is a good idea to think about selling your house as soon as you can.
While it is impossible to accurately predict when one such recession would hit, there are numerous signs that indicate that it is on its way. In recent times, home prices have skyrocketed, with the median family home costing 32 percent more than the current inflation rate. This figure is similar to the 35 percent experienced in 2005. The Housing Bubble Bellwether Barometer, an index of mortgage stocks, increased drastically in 2017 in the same way that it did in 2005.
Millennials Are Now Looking To Invest In Their Future Homes
A recent homeowner report found that in 2015, homeownership for people between the ages of 25 and 34 was only around 37 percent — a figure that is significantly lower than with previous generations. From student loan debts to poor wages, there is a multitude of obstacles preventing young Americans from making the transition from renting to buying.
Despite such challenges, 84 percent of American millennials express the belief that becoming a homeowner is a key component of the American Dream. With this type of mentality, it is not unreasonable to expect an increasing number of millennials to purchase houses as they get older.
Considering that millennials are now between the ages of 23 and 38, many of the people on the younger side of the spectrum will start looking into purchasing a home for themselves. One survey of approximately 2,000 people between the ages of 18 and 34 found that 21 percent of respondents had planned to become homeowners in 2019. The year before saw only 14 percent of respondents express such interest.
While the last recession saw a drastic drop in homeowner rates, recent years have seen these rates embark on a consistent climb. Of all age groups, the largest increase took place among Americans aged 35 and younger. It is, therefore, very possible that millennials could be the future buyers of your home.
Now Is the Time to Sell
If you’re looking to sell your house quickly as is, then this may as good a time as any to do it. There are plenty of buyers in the market at present, but a potential recession on the horizon may ruin your opportunity to sell if you wait for too long.
One great thing to consider is that you don’t need a real estate agent- you could list your house yourself. In this hot real estate market, there are a number of buyers who will be prepared to purchase your house as-is, without renovations. There are also cash buyers who will be prepared to buy your home without delay.
Find the right expert to help you put your house on the market today.