4 Data-Backed Reasons Why You Should Sell Your Home This Year
Eddy Sua
Eddy Sua is the founder and Managing Broker of Capital Group Realty of South Florida AKA as “The Sua Team”...
Eddy Sua is the founder and Managing Broker of Capital Group Realty of South Florida AKA as “The Sua Team”...
Is it time to sell your home?
Did you know that we've been in the 3rd largest housing boom since 1913! Back in 2013, a typical house was selling for an average of $200,000, today that same house would sell for at least $100K more!
With that being said, a good thing cannot last forever... Economists are predicting a possible slow down of the real estate market. The exact date of the slow down is unknown but the recent market trends are showing that 2019 might be the best time to make your move if you've been on the fence about selling your home.
Reason #1: Fewer Contracts are Being Signed
Home sales have had a 6.7% yearly decrease and the rising mortgage rates have affected many homebuyers; leaving them ineligible for home ownership.
With the decrease in buying power that comes with increased interest rates, people are signing fewer home buying contracts!
Reason #2: Mortage Rates are Getting Too High
While it's true that rates are higher right now, it is also true that mortgage rates are constantly fluctuating. If buying a home right now is what aligns with your long term goals, then now is the right time for you. Due to hesitating, you could end up missing out on a great rate if they spike by even a quarter.
According to Credit.com - Historically, interest rates have been much higher—in the 70’s and 80’s, they were at least twice as high as they are now, and in 1981, rates peaked at over 18%. Following the data, rates are quite favorable right now and there’s no reason to put off homeownership just because rates go up a quarter or even half a percent.
Reason #3: Home Sales Already Hit Their Peak
According to NAR (National Realtors' Association), homes sales seem to have hit their peak 2 years ago in 2017.
What does this mean for you?
The speed to sale of current homes on the market indicates a "hotness factor". These metrics are economic indicators that react to patterns that are taking place, because of the rising interest rates and inventory we might see a cool down in the future for the real estate market.
Reason #4: Increasing Competition
In December 2018 the Palm Beach market report pointed out that there were still 7,344 homes active on the market by the end of the month. This was a 17.2% increase compared to 2017.
The longer you wait to put your home on the market, the more competition you may face later on.
THE BOTTOM LINE
Many real estate experts believe that 2019 will still be considered a seller's market. If you've been thinking about selling your home, now might be the best time to make the move to take advantage of the lower interest rates and higher home values.
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