It’s no secret that life’s been pretty good to
sellers for the past several years. Even if you had no need—or desire—to move,
the housing landscape might have seriously tempted you to put your house on the
market anyway. After all, it’s hard not to see visions of dollar signs when
your neighbors are unloading their homes for tens of thousands over asking
price.
But as they say, all good things must come to
an end. And you’ve probably heard that the white-hot housing market of years
past is finally beginning to cool.
So if you haven’t listed your home before now, or did and felt you were not represented well, did you miss the boat? Absolutely not. But with each passing month, the experts say, you can expect the housing climate to shift a bit more in buyers’ favor.
“It’s definitely still a seller’s market in most of the country. But it’s not the same seller’s market that you saw in the last couple of years,” says Danielle Hale, chief economist of realtor.com®. “You might have to think about how your home compares to the competition and new builds, that buyers are going to see when they’re shopping. And you might have to price a little bit more competitively, or think about other enticements to attract buyers.”
I have many reasons a fairly new home may sell quicker than going to that builder in the neighborhood you’ve been looking at., There’s still a chance to cash in for top dollar, though, if you move quickly. Here are the biggest reasons to sell ASAP in 2019.
1. You won’t be the only listing for long
The top reason sellers have been in the catbird seat for the past several years? Inventory. There simply weren’t enough homes on the market to keep up with buyer demand. And when a “Home did go on the market” you can bet a bidding war may soon follow if your Realtor knows their stuff.
“You might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price,” Danielle Hale explains.
That tide is turning this year! That’s because the number of homes for sale is finally increasing, For now, buyers still outnumber inventory. But if you’re thinking about selling and don’t want to compete with your neighbors, it’ll pay off (literally) to list earlier rather than later. (This is particularly true in pricier markets, where inventory is increasing at a faster rate than more affordable areas.
“It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing,” Danniel Hale says.
2. You still stand to make a ‘Fair Profit’
Home prices have been on a meteoric rise for the past seven years. In January 2012, the U.S. median home price was $154,700. Today, that figure has nearly doubled—to $289,300—and sellers have rejoiced. Sellers in Nocatee, Ponte Vedra, and Ponte Vedra Beach are enjoying much better opportunities.
Now comes a twist: 15% of all home listings saw price cuts in January, according to North East Florida Data.
That might sound like bad news if you’re thinking of selling. But hear this out: Those moderating prices, combined with today’s mortgage rates (more on that below), mean increased buyer demand for your house.
Plus, it’s not that home prices aren’t still increasing—they’re just not increasing at the frenzied pace of previous years, which often featured multiple offers at or above asking price. So even though you might have some more competition as a seller, things are still looking pretty sweet for you when it comes to cold, hard cash. When accepting an offer above what is believed the market price, CASH offers are clearly the best to accept. Appraisals are not required, and clearly a quicker close, and rarely disputed even when an appraisal is asked by the buyer at their expense.
“Even if you don’t get an offer above your asking price, you’re probably still going to come away with a handsome profit from being a seller in 2019,”
But again, it’ll pay to put your home on the market
as soon as you can—before conditions change.
“Sellers who list their homes earlier in
the year tend to get a higher sales price, often above list, and shorter days
on market,” says Ali Wolf, director of economic research
at Meyers Research.
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Watch: This Totally Ordinary House Sold for
$782K Over Asking (Yes, You Read That Right)
3. There’s high demand for homes under $300K
There’s more good news if you own a home below
the national median price of $289,300. Not only is that inventory increasing at
a slower rate than its luxury counterparts, but there are more buyers shopping
at those price points.
“If you’re a below-median-price seller,
you will see a seller’s market that is as good as what you saw in previous
years—maybe even better,” Hale says. “You might still see multiple
offers coming in quickly, maybe even above asking price.”
4. Mortgage rates are at a new low
Something strange has been happening over the
past few months. Experts predicted mortgage rates would rise—and at the end of
2018, they were indeed ticking upward as expected.
But since the start of the year, rates on a 30-year fixed mortgage (the most popular home loan) have been falling, sliding last week to a new 12 month low of 4.37%, and of course, those historically low mortgage rates mean you could have more buyers knocking on your door.
Plus, this temporary dip in rates creates
an opportunity for trade-up buyers as well. After all, if you’re selling your
home, there’s a good chance you’ll need to buy another one.
Bottom line: Now’s the time to hustle and get both transactions
done.
“Sellers need to take advantage of low
rates as much as buyers do,” Wolf says. “Sellers don’t want to get
stuck in their homes when rates go up and the math no longer makes sense to
move.”
