Welcome to 2019! Time for a new year for real estate homeowners, sellers, and investors. Last year was a great year for homeowners who were selling…but what does 2019 hold? Here are 4 trends we can anticipate for 2019.
- Interest Rates Will Continue to Rise. Ending the fourth quarter of 2018, the Federal Reserve has raised interest rates again, which has ultimately created an increase in mortgage rates – actually, the highest they have been in the past seven years.
What does this mean for homeowners? There will be fewer potential buyers for your home. Due to increased interest rates, individuals who are seeking to purchase this year will either identify a home that is lower in price, or hold out to see if the market shifts completely to a buyer’s market (which some analysists are projecting).
- Home Prices Are Dropping – The Future is Uncertain. The last year has displayed a continuous upward trend in closing sales prices for homes (including in Baytown). However, the last month has halted this trend, displaying the first decline in home values in the last twelve months. This could be a result of the holidays or the unstable stock market – either way, the change is bringing uncertainty to economists.
What does this mean for homeowners? Just like the title says – home prices are dropping. This means a lower selling price for when homeowners do decide to sell their home.
- Inventory Will Continue to Increase. Have you looked at how many properties are available in your local market recently? If you take a closer look you can see that inventory is increasing. Compared to August, potential home buyers have an exponentially higher number of home buying opportunities. More homeowners are taking into consideration recent trends (specifically, the suspicion that the housing market may crash; however, not as bad as 2007). The future of 2019 indicates that homeowners will continue to list their homes to ensure that they sell before it is too late.
What does this mean for homeowners? More homes equal more competition for any homeowner looking to sell. Unfortunately, this can drive the value of homes down since home buyers have more options. Also, if homeowners do not input the time and energy into upgrading and staging their homes they may have an even more challenging time selling.
- Homes “Days on Market” Time Will Continue to Remain Stagnant…or Increase. From 2017 until recently homes have been selling in record breaking times. For Baytown specifically, homes have displayed a continuous rising trend for days on market since March 2018 – an indication that it is becoming more challenging to sell. 2019 is expected to continue this trend as competition increases
What does this mean for homeowners? Selling your home is not as simple as it was a year ago. If you are planning on selling in 2019 and you want to sell via a real estate broker, you will want to get started as soon as possible. With an uncertain economy and an increased expected time of how long a home must be marketed until it sells, homeowners will want to list before it’s too late.
A Closer Look at 2019…
The future of real estate is uncertain. The end of 2018 brought an all-time low to many stocks in the market, which is often an indication that a crash is inevitable. However, with the holidays, the government shut down, and the continuous trade war that Trump has with China, most analysists are torn on what 2019 means. Nevertheless, if you look at historical trends you should anticipate that the downward movement of the housing market can be most anticipated.
Recommendation for Homeowners:
If you own a home and are considering selling in 2019, you should get started immediately. Yet, it is recommended you avoid the instability of marketing your home, but rather consider selling to an all-cash buyer. The advantages of selling to an all cash buyer (such as ourselves) allows you to avoid the complications related to recent real estate trends. First, we buy homes with no finance contingency – interest rates do not affect our purchase. Secondly, we price your home competitively, looking at recent sales in the areas. Thirdly, we are always buying homes – inventory does not affect our purchase prices. Lastly, we do not care how long homes are on the market – we can close in five days.
As you can see, we provide many benefits to those considering selling. If you would like to learn more about how we can help you close on your home quickly, contact us today.