Image by Nattanan Kanchanaprat from Pixabay
The housing market has posted relatively good numbers over the past few years, even if the average percentages aren't exactly sensational. You may already know that we saw a decrease in growth in 2019, with housing prices rising at 3.3% compared to 2018's rise of 5%. Given the state of the economy and the trends of the past, we'll look at how 2020 is shaping up.
Experts are predicting that home prices will rise 2.8% this year. So if you're getting ready to sell your home, hopefully you're seeing the cumulative effects of steadily rising prices. If your neighborhood hasn't followed the trends though or you've only recently purchased the property, there are a few more factors to take into account before putting your home on the market.
While the home prices may not be exploding, the creep is still being felt by buyers. In the average area, buyers could be dealing with a price increase of 11.1% in less than three years. This kind of influx could lead to fewer buyers, which ultimately leads to fewer offers. Prioritizing the listing and initial price of the home will have a major impact on the quality of your buyers.
Rates have been dropping over the past year, going below 4% for most loans. With the average rates for a 30-year mortgage hovering around 3.7% (3.2% for a 15-year mortgage), this is good news for buyers (and sellers if they're planning to buy again too). However, if trade wars ramp up again, we could see the Federal Reserve move those rates back up, so sellers should keep an eye on the news.
As you can see, the news is still relatively good for home sellers in 2020, especially considering the relative state of debt in this country. Experts do not predict a decrease in equity for the new year, a sure sign that the economy is doing well enough to support rising home prices.
There's plenty of good news for the new year for home sellers, even if it's laced with the fear of a tumbling economy. Real estate professionals are seeing spikes nearly everywhere in the country, regardless of neighborhood. So even if you're not near the best amenities in your city or town, you may still be able to sell for the price you want. As the year progresses, keep an eye on your area, who's buying, and how prices are scaling.
