|5 Reasons It’ll Pay to Sell Your Home Early in 2018|
It’s been nearly a decade since the Great Recession delivered the worst housing crash in modern memory. But these days, the fallout feels squarely in the rearview mirror. Markets have bounced back with fervor, and confidence is skyrocketing. Homes are flying off the market at record prices, and buyers are still clamoring to get in the game.
One thing is clear: It’s a great time to be a seller.
Sounds like the stuff of seller’s dreams, right? But know this: If you plan to sell in 2018—and you want to sell your home quickly and for top dollar—your window of opportunity may be rapidly narrowing. Here’s why you should get moving ASAP.
1. Rates are still historically low, drawing buyers into the market
We may not be enjoying the rock-bottom interest rates of yore, but by historical standards, today’s 30-year mortgage rates—hovering just above 4%—are still low. And experts agree mortgage credit will remain relatively cheap for most of the year.
But rates are on the rise, and it’s been widely predicted that they’ll reach 5% before year’s end. Buyers know that the longer they wait to buy, the more expensive it will be.
2. Inventory remains tight—and demand high
Simply put, there are more buyers than available homes—particularly in red-hot markets where land is scarce and it isn’t cheap to build.
And the housing shortage will likely get worse before it gets better: Realtor.com data predict inventory will remain tight in the first part of this year, reaching a 4% year-over-year decline by March.
Sellers, that means this is your opportunity to be wooed.
Buyers, their choices limited, are going to great lengths (and making some major concessions) to win the house.
We’re in a very favorable seller’s market. We’re seeing bidding wars—which push up prices—and buyers are submitting offers with very pro-seller terms, like forgoing the repair request or waiving the appraisal contingency.
3. Home prices are still increasing
Home prices continue to rise—which translates to more money in your pocket when you sell.
But the gains are predicted to be more moderate than in years past. Realtor.com data suggest a 3.2% increase year over year, after finishing 2017 with a 5.5% year-over-year increase.
Bottom line: You still stand to make a pretty profit if you sell this year, but the earlier you can list, the better off you’ll be.
4. People have more money in their pocket
Record levels of consumer confidence, low unemployment, and stock market surges are setting the stage for high home buyer turnout in 2018. For the first time since the 1960s, the Fed has projected that the unemployment rate will drop below 4%, and the domestic stock market is enjoying a nearly unprecedented rally.
The housing market is already reflecting this boom: Existing-home sales soared 5.6% in November 2017 (the most recent month for which data are available) and reached their strongest pace in almost 11 years, according to the NAR.
Incomes are growing and people are finding better and more stable jobs. Buyers are feeling pretty good about (their) finances.
5. Millennials are ready to commit
Millennials, often crippled by student debt, have been especially hampered by rising interest rates and high home prices.
But the aforementioned conditions are ripe in 2018 for these first-time buyers to take the plunge, and experts predict that millennials will make up a vital part of the buyer pool over the coming year: Millennials could account for 43% of home buyers taking out a mortgage in 2018.
If you’ve been thinking of selling, there has NEVER been a better time!
Connect with me – I’d love to put my 20+ years of Real Estate experience and expertise to work for you in this “Seller’s Market!”