Why you should sell your home in 2020
Economists say that 2020 will be a positive so It might be the best time to put your house on the market. Especially if you’re on the fence about selling this year or next, it may be better to sell in an environment that’s more predictable rather than wait for time to pass and circumstances to change.
In case you needed some reasons to put out the for-sale sign, here are few of them. All based on cold, hard data and the professional insights of housing experts.
Competition is Increasing Among Home Sellers
Sellers had an advantage in the marketplace when there was little inventory available for sale and demand was high. Now that demand is shrinking, and inventory is rising, buyers are gaining the edge in negotiations. That goes beyond just price, to being able to negotiate more terms in their favor and more escape clauses in contracts.
“Increased competition between buyers has resulted in an acceleration in price growth,” said TREB’s chief market analyst, Jason Mercer, earlier this month. “Expect the rate of price growth to increase further if we see no relief on the listings supply front.”
Mortgages Will Get Harder to Get
About the only thing that could turn around the current market trajectory is a return to easy high loan to value no doc mortgage loans. That’s unlikely to happen.
Borrowers who want their mortgage approval to stick shouldn’t open any new accounts or miss any payments. They shouldn’t make any large purchases or close any credit card accounts, either. Lenders must re-run borrowers’ credit reports immediately before closing, and any changes since the time of application can create problems.
As home prices stumble mortgage lenders are only likely to get tougher. They’ll lend less to curb risk. They’ll charge more. They’ll demand more paperwork, higher credit scores and better debt to income ratios.
Millennials New Buyers Number is still increasing:
The biggest wave of new homebuyers will continue to be millennials ,who are mostly first-time homebuyers. But depending on where you live, you may see the youngest generation of adults breaking into homeownership as well. Members of Generation Z, born between 1996 and 2010, are largely still too young to make up a significant portion of the homebuyer market.
37%
The percentage of homebuyers comprised of millennials, according to the NAR 2020 Home Buyers and Sellers Generational Trends Report.
A nice profit may be on the horizon! But also keep in mind that a lot of buyers are being priced out of the market at the moment, which could lead to fewer offers for your home. So, what should you do about this? Be aware of your competition. With less offers to go around, you want your home to really stand out from similar ones in your area. Prepare your home for potential home buyers and work with a real estate agent to help you list your home at the right price.
At the end keep in mind That top real estate agents across the country and the latest trend reports point to clear guidance: if you own a house and have entertained the idea of selling it recently— pull the trigger in 2020.