Over 6 million homes were sold in the US in 2018. That’s a lot of people upping shop and taking their real-estate elsewhere.
Sure, they’ll be selling for all sort of reasons. For fresh starts, new neighborhoods, better schools, proximity to loved ones, and so on and so forth. However, many will be making the most of a hot housing market.
It’s always tempting to sell up when you can guarantee many thousands of dollars more than you bought it for. Indeed, the market has been particularly good to sellers over the last few years.
But is that about to change? According to some, all that might be coming to an end. Obviously, you don’t want to lose money on a property. Is now a good time to get out while you can?
Keep reading to learn all about the housing market in 2020 and why now might be the best time to sell.
The Housing Market in 2020: 7 Reasons to Sell Up
Thinking of selling your home? Here’s why it might be a good call to sell as quickly as possible.
1. Less Demand for Housing
Supply and demand is the foundation of most financial matters.
If supply outweighs demand, then prices fall. And vice versa. If demand outweighs supply, prices rise.
This has been the case in the housing market over the last few years. Sellers have been spoiled. There haven’t been enough homes for buyers to get their hands on. As a result, new houses to market get bombarded with hopeful buyers. In bidding-war style, sellers have almost been guaranteed offers above the asking price.
However, for the first time in a while, the number of new houses for sale is starting to increase (yours could be the next one…). For now, there are still more buyers than houses. But that ratio is falling. Selling earlier gives you a better chance of ensuring a higher price for your home.
The longer you leave it, the more options a buyer has. And that means less money in your pocket.
2. Slowing Hikes to House Prices
House prices have soared over the last 10 years or so.
In March 2009, the average sale price of a home in the US was $259,800. In March of this year, it was $376,000. That’s an impressive increase of around $120,000 in ten years. However, this sort of growth can’t go on forever.
Indeed, since 2017, the tide has been slowly turning. House prices are still going up. They just aren’t rising at such an insane rate.
Coupled with more houses coming to market, expect house prices to plateau at some point soon. Again, getting out sooner rather than later ensures you get full value for your property.
3. But You Can Still Make Good Money
However, don’t be too alarmed by the falling prices.
The good news is that you still stand to gain a good sum for your home (if you act soon).
Indeed, falling prices will heighten demand. After all, more people will be able to afford to buy. Selling in 2020 is a sure-fire way to get the most money possible. Waiting too long may mean the value of your home falls from its current level.
4. Home Sales Peaked in 2017
The end of 2017 saw the highest number of existing houses sold in over a decade.
From there, sales-figures have shown a steady downward trend.
Fewer houses are being sold in 2020 than over the last year and a half. It signals a cooldown in real estate in general. The market was hot; now it’s less so. It is as good a time as ever to make the most of your strong position.
5. Increasing DOMs
We don’t mean the gym-related ‘delayed-onset muscle soreness’ kind of DOMs.
No, these sorts of DOMs refer to ‘days on the market’.
And they’ve been gradually going up for a little while now (even in places where the housing market is especially strong). In all honesty, growing DOMs is not a great sign. The longer a house is on the market, the less demand there is from buyers. Essentially, fewer new buyers are entering the marketplace.
All things considered, there are increasing numbers of houses available for sale, with the same number of people looking to buy. Suddenly, supply begins to outweigh demand. Which, as we know, means prices fall. Sellers suffer.
6. Declining Jobs, But Low Unemployment
The US is currently enjoying the lowest unemployment rate it has had in decades.
However, fewer jobs are being made available on the market. Simply, the labor market is pretty much at full employment. It’s becoming less possible to create more employment opportunities. That’s bad news in the long run for employment rates.
Remember, high employment means more people are willing to make large payments (such as for a house). After all, with money coming in it’s less of a risk. For now, the unemployment rate is remaining steady.
But with an increasingly saturated labor market, that might not last forever. Demand may dwindle. 2020 is a good time to leverage the current positive state of affairs.
7. Impending Recession
Unfortunately, recessions are happening at an increasing rate too.
Since the dark days of 2008, the US has enjoyed a (relatively) lengthy period of economic growth and prosperity. However, many economic experts are predicting that a recession is due in the near future. Some are betting on 2020. That’s next year!
If that’s the happen, then your ability to sell at your home’s current value simply won’t be possible. A paucity of money means fewer buyers and a general drop in house value.
Time to Wrap Up
There you have it: why, from looking at the housing market in 2020, now might be the right time to sell your home.
Sellers have enjoyed a prosperous last decade. The market has been hot, buyers have been plentiful, and homes have been in short supply. House prices have sky-rocketed.
But everything seems to point towards a turning of the tables. To avoid the disappointment of a missed opportunity now is arguably as good a time as any to sell.
Did you enjoy this piece? Are you now thinking of selling up? Call us now to see how we can make it happen.