Homeowners looking to sell should consider 2019 a prime opportunity to cash in.
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. In 2019, consumers shouldn’t expect homebuyers to flood the market again and drive prices through the roof, but it’s also unlikely to be a crisis for home sellers.
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.
Here are four reasons to sell your house in 2019:
- New buyers are still entering the market.
- Interest rates are still on the lower end.
- You have high equity.
- Selling now will be better than waiting till 2020.
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. Ron notes the combination of rising mortgage rates and home prices exceeding buyers’ budgets are what has caused the slowing of homebuyer activity in recent months.
But with available housing inventory remaining low, even with rising interest rates, buyers who are ready to make a purchase will still shop for homes. The biggest wave of new homebuyers will be among millennials, who are mostly first-time buyers. In a Harris Poll survey of 2,000 U.S. adults commissioned by real estate information company Trulia, more than one-fifth of Americans between ages 18 and 34 said they plan to buy a home within the next 12 months. Already, millennials make up the largest share of homebuyers at 36 percent, according to the National Association of Realtors, which released the number in March 2018.
It may be time to update your decor.
An October 2018 report from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University projected that remodeling spending is expected to grow to more than $350 billion in the third quarter of 2019. While it’s certainly an increase from the $331 billion of remodeling spending during the same period in 2018, the expectation shows a slowing in growth compared to recent years. Whether you’re renovating your home for yourself, updating your home to sell or looking to spice up a living space that you rent, you’ll see some new trends entering the interior design field this year – and others easing out of the spotlight. Here’s what to keep an eye out for in 2019.
Updated on March 8, 2019: This story was originally published on Oct. 26, 2018, and has been updated with new information.