Should you sell your home in 2018? As with most things in real estate, a lot comes down to where you live in the US, and even the specific community. But national trends generally indicate a rising market and a strong economy. Should you sell? Below is more information to help you make this critical decision.
Americans Gaining Confidence in Housing Market
More Americans in 2018 are feeling confident in the housing market, according to Fannie Mae’s Home Purchase Sentiment Index. Over the last 12 months, home prices have been rising in most markets. In some areas, such as expensive California, this is threatening affordability. Some areas have a lack of houses for sale, which can be great news for sellers who want top dollar.
The Fannie Mae HPSI increased 3.7 points last month to 89.5. This was a reversal of the decrease that was seen the month prior, which had been an all time high. The share of Americans who say it is a good time to buy a home went up three points to 27% last month.
People in the US think in 2018 that home prices will continue to go up over the next 12 months. The HPSI survey found that people who believe this went up by 8% to 52% in January. But as they expect home prices to go up, the number of Americans who think rates will fall in the next 12 months went down by two percentage points.
Another factor in increasing confidence in the housing market are employment prospects. The number of Americans who are not worried about losing their job went up five points. People who said their income has gone up in a big way from a year ago was flat at 16%.
These facts show a rising market overall in the country. This could indicate for some people that it is a good time to sell. Also, mortgage rates are still in the low to mid 4s. While they have increased, they are still low, so that is incentive for people to buy a home before rates inch higher.
More Data in 2018 Points To Time to Sell
Trulia.com in early 2018 did a survey of 2,000 adults in the US, done by Harris Poll. The survey showed 31% of those who responded expected 2018 to be a better year than last for selling a home. Only 14% of home owners thought it would be worse. That said, only 6% of people surveyed said they planned to sell in 2018.
Zillow.com also made similar predictions for 2018. It said that inventory shortage should continue to drive demand for homes in major US markets. With not enough homes on the market in many communities, price increases could be in the mix.
US News and World Report also stated recently that the following factors are driving buyers in 2018:
Buyers Want…..to Buy
Many home buyers in the past three years have found a shortage of homes in their price range. This is causing them to look for a home sooner this year. In fact, before the New Year even rang in, people were looking online at Homelight.com for new homes at the end of 2017.
Usually you will have the best chance to sell your home from March to June. But warmer climates often have a longer time frame to sell because the weather is better for longer.
If you sell this year, you may want to try to put your price at the top of the market to see what happens. There is considerable pent up demand for housing.
Interest rates are still low, for now
Low rates make it easier for people to buy a home. While the rates are still low in 2018, there is no doubt they are inching higher, and signs are this will continue. The economy is strong, unemployment is low, the Trump tax cuts are kicking in, and this will lead most likely to economic growth, and higher interest rates.
According to Freddie Mac, as of January 2018, the average 30-year interest rate was still hovering 4%, Nerdwallet.com reported. But the Fed is going to raise rates at least twice this year, so rates will rise.
We should not see a huge spike in rates, but the Mortgage Bankers Association predicts rates will hit 4.6% in 2018. In 2019, it predicts rates of 5%. This means that 2018 could indeed be a great year to sell your home before much higher rates hit.
Generally, 2018 may be a wise time to sell your home because prices are rising, demand is high, and rates are low. This combination could cause more people to buy in 2018 than in 2019 and 2020, so talk to your agent to determine if it is a good time in your market to put your home on the market.
References: Why You Should Sell Your Home in 2018