Fortunately for you, a broad proportion of real estate experts have agreed that selling your home in 2020 may bring you the best return for your home, especially after the real estate market blossoming in 2019.
Below are five reasons why you should consider selling your home this year:
1. Declining Mortgage Rates
As of December 27th, 2019, Bankrate’s latest survey reports that the benchmark 30-year fixed mortgage rate has dropped from 4.06% in June 2019 to 3.780 percent with an APR of 3.910 percent.
In May 2019, 30-year fixed mortgage rates were at 4.29 percent.
The resulting difference between 30-year fixed mortgage rates is an astounding 0.51 percent, which more than doubles the decrease experienced from May 2018 to May 2019.
With decreasing mortgage rates continuing to set new record lows, home buying has never appealed more to people than before.
2. Millennials Are Buying Homes
Approximately 12.3 percent of millennial renters state that they plan to stick with always renting, which is up from 10.7 percent from last year.
Despite the increase fluctuation of millennials seeking to purchase homes versus renting, an overwhelming sum of millennials are more interested in owning a home but affordability remains the biggest obstacle.
Only 28 percent of the 12.3 percent who plan to always rent are doing so because they believe homeownership to be financially risky.
As a whole, more millennials than ever are buying homes and with decreasing mortgage rates the affordability of home buying will become more accessible than over the previous couple of years.
3.Increased Competition Is Expected
Mortgage rates have been declining steadily for the past 9 months.
With more people looking to buy homes an increase in competition will naturally occur.
As a result, this may mean that your home receives less bids, may spend a longer time of the market or be purchased at a lower intended sale price.
This is why selling your home now while their are a generous sum of buyers and a lack of competition may result in you getting the best value for your home.
4. You Possess High Equity
For those of you homeowners you bought homes during the recession and up to 2015, you benefitted largely from historically low interest rates.
As a result, you may possess higher equity in your homes which means if you sold your home you would net more from the sale.
How you choose to invest your net is up to you, you could easily use part of your net as a large downpayment on a new home which means you’ll have lower interest rates while decreasing your probability of experiencing increasing monthly payments through private mortgage insurance entities.
5. 2021 May Be Too Late
Many real estate and financial experts believe that due to the exhibited economic uncertainty of the real estate sector, a recession is due at any time.
Out of 100 real estate experts surveyed from Zillow, 14 percent believe that a recession is likely to occur in 2021.
Collectively, a near 90 percent of surveyed experts agree that a recession will occur within the next couple of years.
These statistics serve as an indicator that selling your home sooner rather than later is likely your best bet to get the more value and equity return on your home.
Bottom Line
If you’ve been considering pulling the trigger on selling your home you may not have a more opportune time than now.
There are a surplus of buyers in the market looking for a home but if another recession was to occur within the next year or two you may lose your opportunity.
Among the 2 biggest dilemmas that home buyers face would be 1). How long will my home sit on the market, 2). Am I getting enough for the value of my home?
Due to the current state of the real estate market there are more than enough opportunities to sell your home at more than a fair price, which not only ensures you are recouping its value but adding equity to your pocket as well.
Many homeowners with prior experiences look for cash home buyers, who will buy your homes with cash in hand and oftentimes without the added expenses of repairs and renovations.
As reported at The Balance, these cash home buyers prefer swift, easy transactions which is perfect for you if you’re in the market of selling your home.
As always, there are a multitude of factors to consider when listing and selling your home, so it’s always best to get a professional insight from an expert.
After you find the best plan for you, then you can reassuringly list your house on the market and move forward with your future.
Citations:
Campisi, Natalie. “Homebuyers can lock in lower rates this week, as they get a final cut before 2020.” BankRate, 25 December, 2019,
https://www.bankrate.com/mortgages/analysis/
“Current Mortgage and Refinance Rates for December 2019.”
https://www.bankrate.com/mortgage.aspx?
Thorsby, Devon. “Why You Should Sell Your Home in 2019.” RealEstate.USNews. 7 March 2019, https://realestate.usnews.com/real-estate/articles/why-you-should-sell-your-home
Warnock, Rob. “2019 Millennial Homeownership Report: More Millennials Are Preparing For A Life of Renting” ApartmentList, 19 October 2019, https://www.apartmentlist.com/rentonomics/2019-millennial-homeownership-report/
Zillow, 22 May 2018, “2020 Vision: Experts Say Next Recession Looms at Decade's End” https://www.zillow.com/research/experts-2020-next-recession-19994/
