Last Updated on February 18, 2021 by Maggie Sutton
Generally speaking across the country, the housing market is still a sellers market. This means if you haven’t listed your home yet, now might be the time. If you’re on the fence and asking yourself, “Should I sell my house?” here’s why selling a house in 2020 may make good sense.
As you read on, remember heroes like firefighters, EMS, law enforcement, military (active, reserves and veterans), healthcare professionals and teachers can save an average of $2,400 when they use Homes for Heroes specialists to sell their house! Simply register to learn more. There’s no obligation.
Housing Market Trends – Sellers Market?
There are several trends happening in the U.S. housing market you should know about. It is currently (June) the peak home selling season. Where you’re located, and the type of home you want to sell, makes a big difference when considering whether to sell your house this year.
Hot Markets – Price Correction
In the West, hot housing markets like Los Angeles, Seattle and San Francisco experienced large home price increases over the past two years. This led to a pretty dramatic cooling trend so far in 2020 with more than double digit sales declines over last year. Homes became too expensive in these markets. However, experts now say prices in these markets have corrected themselves, or are in the process of correcting themselves this year.
Affordable Markets – Prices Still Rising
Many more affordable markets across the country have managed sales increases this year. If you’re in a more affordable market, for the time being, home prices are continuing to rise. This is good news for sellers. Interest rates have flattened and the number of homes for sale is increasing. However, because inventory levels are still fairly low in most markets, home buyers may enter bidding battles to get the home they want. This is also good news for the home seller who may receive a bid higher than the asking price.
U.S. National Median Existing Home Price Trends, National Association of Realtors (NAR) News Room
All that said, nobody really knows what will happen the remainder of the year. We recommend you go with what you know. Timing the housing market can be difficult, so let’s get back to the question, “Should I sell my house this year?” If you want to sell a high priced luxury home in one of the hotter housing markets, you may not get the price you want this year. If you’re in one of the more affordable markets, generally speaking, it’s a sellers market again and 2019 may be a great year to sell your house!
Toward the end of 2018, mortgage interest rates were slowly climbing. Experts predicted they would continue to rise in 2019, but it turns out they were wrong. Mortgage rates in many parts of the country have actually gone down since December of 2018. Officials at the Federal Reserve essentially pushed pause on interest rate hikes. Some say the pause is simply a temporary stop before rates will increase again later in the year. For now, steady, lower interest rates are good news for sellers because home buyers are more likely to purchase a home (plus you will receive a good interest rate if you purchase another house after you sell).
The U.S. economy is doing very well by most measures. This is good news for sellers. A stable economy increases consumer confidence, meaning there will be more buyers looking for homes. Although it is only one economic indicator, the stock market has shown strong gains since falling sharply toward the end of 2018. This can also mean people have a little more money to put toward buying a house. So, if you would prefer to invest in the stock market instead of selling your house in a less than ideal economy then take a look at this guide on finding the best stock trading app for beginners.
In Addition, sometimes the best stock markets are not the ones in your own country, for example, one of the biggest stock markets is the one in Germany. Buying things like DAX stocks – “DAX Aktien kaufen” shows the 30 largest national companies that offer the highest investment returns on the Frankfurt Stock Exchange meaning that you will always be on the right track for stocks with high profits.
Some experts are predicting the economy will slow down as part of the natural cycle after such a long period of sustained growth. Talk of an economic downturn may cause home buyers to put their house shopping on hold. There is no doubt the economy will eventually dip, but nobody knows when. Are you still asking yourself, “Should I sell my house?” We can tell you this, selling your house while the economy is strong, average home prices are higher and interest rates are favorable is a pretty darn good outlook for any home seller.
Supply and Demand
The old economic principle of “supply and demand” is as relevant as ever when it comes to the real estate market in 2019. Part of the reason the last few years have been good to sellers is because of a severe shortage of homes on the market. The lopsided ratio of buyers to available homes meant bidding wars and homes going for well over asking price. This is still happening across the country in many markets, but the inventory of homes for sale has been on the rise. This may mean that prices fall as competition increases, so getting your home on the market sooner versus later may be a good move.
There’s good news for anyone who owns a home priced below $300,000. There is still a large demand for these types of homes and a shortage in inventory. Anyone looking to sell a home in this price range may actually see a slight boost in the sale price, and that’s thanks in large part to millennials.
Recent Impact of Millennials
Millennials are creating some disruption in the real estate market. Over the past decade, many millennials chose not to buy a home and continue renting. However things are changing. It may be due to the strong economy, or maybe they have saved enough for a down payment. Either way, more and more millennials are looking to buy a house in 2019. Experts say these first-time home buyers may be joined by large numbers of older millennials who own a “starter home” and are looking to upgrade. In either case, the coming of age for the millennial population looks to be a boon for anyone selling a house in 2020.
Save Money When You Sell Your House
Heroes who sell a house with the help of our specialists save an average of $2,400 in Hero Rewards savings. If you’re ready to take advantage of this sellers market, register with Homes for Heroes today. There’s no obligation and you’ll be automatically matched with a real estate specialist in your area. They can help you get top dollar for your home and save money throughout the process so you can put even more money in your pocket.