Every homeowner at one point has that internal conversation with themselves. Do I sell now? Should I wait until next year? Will prices keep going up? Can we get more money if we wait? The list goes on. I’m going to help you out with that decision by showing you why selling your home in 2018 may be your best shot at getting the most money, while also looking at the big picture.
Historically Low Interest Rates Empower Buyers
The extremely low interest rates that we’re experiencing in this market are a major factor that is contributing to buyer demand. Earlier this year rates were still around 4.25% and are still great now around 4.75%. However, interest rates cannot and will not stay this low much longer. Most economists predict that they could easily be around 5.25% or higher this time next year. So why should you care if you are selling? Because increased interest rates will directly affect the purchasing power of a buyer for your home. Increased rates and sale prices mean that if you wait to sell next year, the pool of buyers for your home could dramatically decrease. Not to mention, if you are selling and buying concurrently, then the higher interest rates will affect your purchasing power for your next home. This is especially important to remember if you are upgrading into a more expensive home. Selling your home in 2018 when buyers are ready to purchase is a perfect time!
Home Price Are Increasing but Won’t Rise Forever
While sale prices in Livingston County and most of the country are very high and, in many cases breaking records, we all know that growth like that cannot be sustained forever. Consider that in Livingston County over the last 5 years, the average sale price has increased by an average of about 5% each year, some years as much as 9%. That extreme growth in housing prices according to most experts is not sustainable. Predictions are that while housing prices may still rise, it will not be at the rate they’ve been increasing. Selling your home in 2018 is a smart move, before we see the market level off and interest rates rise with increased inventory.
Inventory is Still Low
The number of homes on the market is nearly as low as we’ve ever seen, going back many years. But again, it will not continue this way as we are starting to see a slight shift in the market. Even since May in Livingston County the inventory has increased by 13%. While it is typical for the number of homes to increase in the summer months, it’s a trend that will likely continue for the rest of the year. February was the lowest inventory that we saw locally, and it has increased each month, albeit slowly. In order to take advantage of the low inventory and lack of competition, you should consider selling your home in 2018 during the summer, while buyers are motivated and eager to get into a new home before school starts again.
A Healthy Economy Means More Spending
A strong stock market, consumer confidence, and low unemployment means the public has more money and they are ready to spend it. Income is growing, jobs are stable and recent increases in the amount of tax deductions. Millenials are especially active in home searches due to more lending options and better jobs. It is estimated that Millenials will account for 43% of home purchases in 2018. This is a seller’s dream, and another reason you should be selling your home in 2018!
