As our market stands, the golden age of home selling may be coming to an end.
Not too long ago, the housing market hit a record low… at least when it comes to the number of homes for sale.
In December of last year, inventory of existing homes fell to the lowest level since 1982, and that’s caused home prices to jump 7.8% across the country—one of the biggest spikes we’ve seen in four years. This has largely been the story of our market over the past several years: Demand far outpacing supply and causing prices to surge.
Mortgage rates are also incredibly low, which makes it easier for buyers to buy. When you combine this with the low inventory, it makes right now a great time to sell. In these conditions, you can likely sell quickly, with very little hassle, and for a premium.
Things might start to change soon, though. Mortgage rates can jump back up at any point, and just a 0.5% bump can greatly affect buyers’ purchasing power. For example, right now a $400,000 home may require a monthly mortgage payment of about $2,500, but if that 0.5% bump materialized, your price point would have to go down to about $380,000 to keep that monthly payment.
Right on cue, new home construction reached a 13-year high last December to meet the surplus of buyer demand. This is great news for buyers desperately searching for a new home but not great news for sellers because it means the golden age of home selling may be coming to an end.
So if you’re thinking of selling, now may be the time to act. If you’re curious about what your home is worth, check out our customized home calculator on our website. Afterward, we’ll verify the valuation ourselves. It will take time for all the new construction to satisfy buyer demand, but even just a few new housing projects will slow home prices down, so consider that too.
The hottest seasons for real estate are on the horizon, so if you have any more questions about our market, don’t hesitate to reach out to us. We’d love to help you.
Keep in mind that none of my predictions are perfect. They don’t take into account the coming election, trade negotiations, or any other possible shocks to the economy. So if you’re thinking of selling or buying, give me a call or send an email. We can make your 2020 real estate move a smart one.