Why the Housing Market Is Still a Seller’s Market in 2019
In the real estate world, you never hear the end of the debate between sellers’ and buyers’ market. Recently, there has been a lot of news coverage saying 2019 is officially a buyer’s market. Is this really the case?
According to recent research, news outlets might be wrong. While the housing markets across the country might not be as warm as they were in previous years, that doesn’t mean now isn’t a great time to sell your home. In fact, 2019 might be your best bet to score a good deal on your home. In this guide, we’ll explain why the U.S. housing market is still a seller’s market in 2019.
What does a seller’s market mean?
First, let’s define what it means to be in a seller’s market vs. a buyer’s market. These terms are easy to confuse if this is your first introduction to real estate and selling your home.
Essentially, a seller’s market is when the demand for homes exceeds the supply. Since there are more people who want to buy homes than properties available, the average cost goes up. This is when you’re more likely to see bidding wars, higher listing prices, and competitive home purchases.
On the other hand, a buyer’s market is when there are fewer buyers than sellers. In a buyer’s market, the average costs of homes go down since there are fewer buyers. Buyers might be able to offer less money, and it’s unlikely that there will be any bidding wars. You can see from these definitions why home sellers hope for a seller’s market when putting their home on the market. Now, let’s examine why it’s still a seller’s market.
1. There are still new buyers.
One of the first reasons to consider selling your home today is because people are still deciding to buy homes. Interest rates are on the rise, and this has scared some buyers away, but many buyers are still applying for mortgages.
This is especially true for lower-priced homes. There are many new homebuyers just now entering the market, mostly Millennials. These are mainly first-time buyers, and they’re finally in a financial situation where they can afford a home. Now is the time to take advantage of this new wave of buyers.
2. You have higher home equity post-recession.
Most homeowners have recovered from the 2008 recession, and that means they’ve rebuilt or started to build equity on their home. Any homebuyers who bought shortly after the recession benefited from low-interest rates, and this means they’ve begun to really rack up home equity.
The higher the equity you have in your home, the more you have to gain from selling. Selling now will give you more to put towards your next down payment, and you’ll be able to avoid higher interest rates with your larger contribution.
3. Interest rates are still reasonable.
Despite rising interest rates thanks to the Federal Reserve, these prices are still reasonable. Mortgage rates have fluctuated a bit in the past few months, but they’re still at a very reasonably low percentage.
Mortgage rates are more likely to rise in the next few months leading into 2020, so take advantage of the market while it’s still hot for buyers. In the next few years, the tides will likely shift back to sellers.
4. You should act sooner rather than later.
Ultimately, the reason it’s still a seller’s market in 2019 is that it’s better to act now than to wait it out. The next recession is definitely on the horizon, and we don’t know for sure when it will strike next. If you’re considering selling your home, this might be your last chance to get the highest value for your home.
We know right now is still a seller’s market, but it might not last for long. If you wait to sell your home, you might find yourself swept up in another recession.
Should you sell your home?
After reading this article, you should have a good understanding of why we’re currently still in a seller’s market in 2019. However, this isn’t going to last forever. Top real estate experts argue a recession is on the horizon, so it’s important to stay on top of these trends in the housing market.
If you’re thinking of selling your home, now is the right time to act. Otherwise, if you’re comfortable where you are, it might not be a bad idea to stay where you are for another five years or so to see how the real estate market changes.