At the start of 2019, the window to cash in on a hot housing market appeared to be on the brink of shutting.
Inventory fattened up to the tune of a 10% rise in the nation’s largest market (approximately 6% locally). The average mortgage rate was up to 4.45% which felt like highway robbery compared to preceding years. By early summer, talks of an impending recession stirred up worry. But these indicators turned out to be red herrings for how 2019 would end and how 2020 would begin.
As a result, expectations for real estate got flipped. Here are 5 clear reasons its not too late to sell your home in 2020, tips on how to take advantage, and what to do (hustle) knowing that rarely will you get an extension twice …
1. You’ve got the economy on your side.
In 2019 the US economy survived an inverted yield curve, many impassioned tweets about trade wars with China and doubts over how long it could expand without breaking. By November, it said “trust me, Im doing fine. Here, take these 266,000 new jobs for good measure.”
Whats to explain this unprecedented economic growth, which keeps people happy, working, and making big purchases like a new home?
The after effects from the housing crisis in 2008, people are super cautious about spending. This responsible behavior has underpinned the expansion with financial stablility and balance. Hence, the atypical expansion-recession-expansion cycle that is playing out.
I don’t believe we are entering a recession. I do believe prices are softening and maybe decreasing in a slight amount but the market has been very stable for the past year. Locally, home prices even managed to appreciate, overall, by 6% last year. That indicates a very stable market.
2. You’re sitting on a goldmine.
Americans are house-rich right now. Tappable homeowner equity (the amount you can borrow against your equity at loan to value of 80%) hit an all-time high. The average Las Vegas homeowner gained almost $20,000 in equity in 2019. That pace is slowing though and compared to double digit appreciation in previous years but still remains what I would call “stable.”
3. Lock in a low interest rate on your next home.
In 2019, the Federal Reserve cut interest rates three times: once each in July, September and October. The 30-year fixed-rate mortgage averaged just 3.9% during 2019 – the 4th lowest since Freddie Mac began to track it in 1971. As of January 2020, its as low as 3.72%. This gives many homeowners a window to downsize or trade up.
4. A shift toward a more balanced market will not translate to a buyer free-for-all.
From 2015 to mid-2018, homeowners across the country enjoyed the perks of a hot seller’s market — if you put your house up for sale, you’d likely ignite a bidding war with little prep work and have to make very few concessions between offer and close. However, by 2019, more cities started to shift to a leveled playing field between buyers and sellers.
5. Listings are rare like precious jewels right now.
The inventory shortage lives on. There are still more buyers out there looking for homes than there are homes available to buy, and that means you hold a lot of cards as a seller in 2020.
According to the National Association of Realtors, existing-home sales data, the total available U.S. housing inventory at the end of November 2019 was 1.64 million units, a decrease of 7.3% from the previous month, and a reduction of 5.7% year-over-year.
But what if there’s a building boom and a sudden glut of shiny new homes arrives on the market? The amount of new construction contributing to inventory levels varies according to region, but overall, the number of new houses becoming available for sale across America remains on the scarce side.
Don’t hesitate if it’s the right time for you. For homeowners looking to sell in 2020, the lack of new inventory will no doubt work to their advantage. The 2020 outlook is as follows: Anything can obviously happen, but right now it’s a great time to be a seller. If this is a good time for you, I would not hesitate.
As a full-time professional Realtor since 2002, I provide the expertise and energy it takes for a successful real estate transaction – in any market! I am committed to service with results and professional ethics. As a result of my commitment, hard work, great team and all of my loyal clients, I have closed over 100 million in sales over my career. I consistently rank as a top producer at my company and in the top 10% in the state. Consider us to successfully sell your home.
Stacy Sheeley Homes | Realty One Group | 702-292-9064 | firstname.lastname@example.org