4 Reasons to Sell in 2018
|Four Reasons to Sell Your Home in 2018|
If you’ve been sittingon the fence about selling your home, it might just be time to hop off. Now,2018 is poised to be the year of the home seller, real estate experts say. Sowhat are you waiting for?
“Sellers have been inthe driver’s seat for the last two years, but this year is shaping up to beeven better for several reasons,” says Jonathan Smoke, chief economist ofrealtor.com®. “Nothing is bad for sellers today.”
A combination offactors is coming together to make 2018 a prime seller’s market for most of thenation. Here’s are 4 reasons why…
Reason No. 1: Mortgagerates are still low
It’s all about rates.Low mortgage rates translate to lower monthly costs. Lower costs entice buyers,which is good for sellers.
Although mortgagerates have been ticking up since mid-October to slightly over 4%, the rates fora 30-year fixed mortgage—the most popular home loan—are still hovering near30-year lows. For now.
What does that have todo with home sellers? Well, potential buyers who are armed with that knowledgemight hustle to close on a home before a rate hike.
What if you’re nowherenear ready to put your house on the market? That’s OK. Even if rates nudge upby the end of 2018, they’re still expected to be low enough to seduce buyers.The tipping point is when rates reach 5%, experts say. That’s when they couldput the brakes on the robust real estate market.
Reason No. 2: Inventory islow
Remember in Econ 101,when you learned that low supply and high demand lead to rising prices? Thesame is true for residential real estate. When inventory shrinks, availablehomes become more valuable.
Make note of this too:not only are there fewer homes for sale, but the time those homes havespent on the market has decreased year over year as well. If priced correctly,the typical home should move quickly, Smoke says. And that’s another boon forsellers.
Reason No. 3: Home pricesare rising
Lower inventory andgreater demand have pushed up home prices. Higher prices particularly benefitthe seller whose property value plunged during the recession. Thanks to risingprices, many homeowners whose property was underwater can now sell withoutsuffering a big loss.
“2017 will be a rare‘balanced market’ for buyers, because even though mortgage rates are edging up,many sellers have recovered enough equity to be able to afford to sell,” saysColby Sambrotto, president and CEO of USRealty.com.
Reason No. 4: Job marketsare strengthening
As unemploymentdecreases and wages increase, consumer confidence will climb. Increasedconfidence will spur buyers to jump into the market which is more good news forsellers.
“These things are allconnected,” Smoke says. “If people are confident, they’re more likely to buybig-ticket items like houses and cars. And then they spend more money on otherthings. It reinforces the economy, creating a virtuous cycle.”