Are you contemplating selling your home in 2018? If so, you’re probably going through a laundry list of things to do: should you paint the entire house or just the front door? Should you landscape the yard or let the buyer make it their own when they move into the house?
A Realtor can help you decide which of these things matter most. But first, one of the most important factors to consider when selling a home is what kind of housing market you are experiencing. What exactly does it mean to be in a buyer’s or a seller’s market, and more importantly, which are we in right now? Never fear; we’ve got you covered.
A buyer’s market is aptly named, as it’s the deal time to buy a home. Typically, there is an excess of homes on the market and not enough buyers to go around. This trend tips the negotiation factor scale to the one in the market to purchase–the buyer holds all the leverage because they have plenty of other options.
On the flip side, a seller’s market is one where the seller holds the cards. Favorable conditions for a market in the seller’s corner include low-interest rates, a strong economy or at least one on the upswing, and a shortage of homes for sale. At this point in 2018, we can put a checkmark next to each of these three factors. Add a couple more current trends to our list, and now is an excellent time to sell.
1. Interest Rates Have Dipped–For the Moment
Home sellers across the U.S. have enjoyed historically low-interest rates since 2011, but this won’t last forever. While rates are straddling the low to mid 4% range, for the time being, big name housing authorities such as Freddie Mac, National Association of Realtors, National Association for Homebuyers, and Mortgage Bank Association are predicting across the board that our luck may be running out. Rates are predicted to rise next year from a half to a whole percent. In fact, some of the least optimistic forecasts say rates will increase by the end of 2018.
Sellers and buyers are at an equal disadvantage when interest rates go up: buyers will back off at the higher interest rates, dropping sellers’ prospects of making a deal at the price they want to list. Savvy buyers will be looking to snap up their piece of the American Dream before the interest rate increases, so it is wise to act fast and get your home on the market now, preferably well before the end of the year.
2. The Economy Is Growing
Across the nation, we have rising wages, stock market jumps, and lower unemployment rates. 2018 is gearing up to be a healthy year for our American economy. Consumers, by and large, understand that economic health leads to more positive feelings, which leads to more spending, which leads to more Americans pouring back into our economy and housing market. With recent tax cuts leading to even more money in the pockets of American home buyers, this is the time to sell.
3. And So Is the Homeownership Rate
The homeownership rate saw a steady decrease across 2005 to late 2017, but by late 2017 it had finally begun to creep back up for the first time in over ten years. At this time in 2018, it’s still climbing. While we’re not at the rate we were over a decade ago, any amount of growth is good news.
And there’s even more good news: experts at Realtor.com predict that an influx of millennial first-time homebuyers will be ready to get in the game in 2018, potentially making up almost 50% of the home-buyers market. With optimistic home buyers flooding the markets, now is a great time to sell.
4. Inventory Is Low
The number of houses on the market is low, sending buyers scrambling to sign papers and accept terms on their dream home. While about 1 out of 3 optimistic Americans believe that the housing market 2018 will be better than it was 2017, the experts unfortunately disagree. Forbes predicts this low housing inventory crisis might actually get worse before it gets better.
A low inventory market drives house prices up and can make it a challenge for buyers to wheel and deal. Instead, buyers understand that agreeing to the listing price or even going higher, might be the only way to secure the deal on grabbing that dream home off the market. Sellers clearly have the advantage in this scenario.
5. The Timing Is Right
2018 is just starting to stretch its arms and get its kinks out, making this the prime time to sell, and real estate trends dictate that spring is considered the ultimate time of year to list your home. And it makes sense–we’re just past tax season, and people are still in the throes of New Year’s optimism with some extra cash to boot. Allergy season has its advantages: your blooming grass, trees, and flowers work to enhance your home’s curb appeal, making your house more likely to attract potential buyers. The housing market is partially driven by weather, after all, and it’s looking like sunny skies across the U.S. for the next few months. Seller, take heed.
Can’t sell in April or May? Don’t give up hope if you can’t get that “For Sale” sign out front just yet. The upswing for home buying generally stays strong through early to mid-summer, and in sunny climates like Florida’s, home buyers often keep on the lookout for a new home through fall.
Are you looking to sell in the Fort Myers or Cape Coral, FL area? You are doing so at the perfect time, with growth on the rise and our seller’s market in full swing. The hardworking team at Rebecca’s Realtor will expertly guide you every step of the way, ensuring your home selling experience is a breeze.