Many markets throughout the U.S. are experiencing an inventory shortage which means there aren’t enough houses on the market to meet buyer’s demand. 2019 might be the best time for you to put your house on the market. Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve. If you bought your house in the last year or two, still love it and don’t want to part with it, go ahead and wait another five years before revisiting the thought of selling. But if you’re weighing your options to sell, considering selling this year or maybe the year after, don’t play the waiting game.
New buyers are still entering the market
As interest rates rise, some buyers will hesitate to make an offer on a home or apply for a mortgage, so be ready to see occasional drops in buyer activity. And if your house is at the higher end of the price range in your market, you should expect less buyer interest than before. The combination of rising mortgage rates and home prices exceeding buyers' budgets are what has caused the slowing of homebuyer activity in recent months. The biggest wave of new homebuyers will be among millennials, who are mostly first-time buyers. The bottom line is when the market is red-hot, buyers remain active and it’s still possible to profit from your home sale.
Interest rates are still on the lower end
Mortgage interest rates have been on a bit of a bumpy road over a couple of months. As of the end of February 2019, however, interest rates are down slightly to 4.35 percent, according to the mortgage loan company. While it’s reasonable to expect mortgage rates to continue to climb gradually throughout the next year
Selling now will be better than waiting till 2020
If the property is not for sale in 2019 that means putting your house on the market in 2020, the sooner option is the best one. According to the survey almost half expect the next recession to occur in 2020, while another 14 percent believe the recession will hold out until 2021. Whether you believe the recession is imminent or a long way off, current real estate patterns indicate a sudden upswing in activity or prices is unlikely in the near future. Real estate markets tend to operate on a cycle of their own, the length of which varies by market but can be between 10 and 16 years total and flow from a seller’s market to a buyer’s market with a period of balance in between.