Is Now a Good Time to Sell?
As many of us gear up for a new year in the real estate market, many questions come to mind. One of which that most owners consider is, “Is now a good time to sell?” While the answer may not be as simple as saying yes or no, there are some things to consider that may sway your decision on listing in the near future.
According to Matthew Gardner, Chief Economist for Windermere, millennial buyers were expected to hit the market in a big way. While Matthew predicted that millennial would make up a large piece of the buying market in 2017, they only ended up contributing to 34% of buyers in the active market, actively seeking out lower priced locations and home. While they may not have boomed in 2017, Matthew expects that their contributions toward the real estate market will grow as they delve further into their careers. With credit profiles rising, millennials will be able to purchase higher priced homes, allowing them to tap into new areas of the market.
For existing home sales, Matthew predicts that in 2018 we should expect a reasonable increase of 3.7% – or 5.62 million housing units. In many areas, demand will continue to exceed supply, but a slight increase in inventory will help take some heat off the market. Because of this, home prices are likely to rise but by a more modest 4.4%.
New home sales in 2018 should rise by around 8% to 655,000 units, with prices increasing by 4.1%. While housing starts – and therefore sales – will rise next year, they will still remain well below the long-term average due to escalating land, labor, materials, and regulatory costs.
One aspect of the market that continues to baffle forecasters is interest rates. The anticipated for rising rates have yet to make an impact on the real estate market, however it is still projected that the rates will slowly increase to approximately 4.4% for a conventional 30-year fixed mortgage.
With all that said, the prediction for 2018 is that there will be a modest improvement in the number of homes for sale in 2018. Higher home sales in 2018 may be impacted by the rate of first time buyers coming into the market which may play a substantial role in the housing market.
If you are considering the sale of your home this year, timing is key. One of the best ways to ensure that your home is sold quickly and at the highest rate is to work with a realtor who can apply the best strategies in the home selling process. From staging your home to listing it at the right price, I am here to support you throughout your next real estate transaction.
Give me a call today so we can get started.
I look forward to hearing from you.