If you’re considering selling your home, 2020 might just be the right year to cash out on your investment. The markets are still favoring sellers and homeowners may be surprised by how much their house has appreciated in the last few years.
Even if you haven’t thought about selling, there are still some compelling reasons that 2020 might be the year to move out and move on.
1. Likely Recession
There is a 50-50 chance of a recession in the next year and a half, according to the economist who predicted the housing crash. Many economists suspect the recession will come in 2020.
With home values currently high, a new recession promises to reduce home values — and cause some current homeowners to fall behind on their mortgage payments.
This means that homeowners may be more motivated to sell than they are now, turning a seller’s market into a buyer’s market as the supply of homes increases.
2. Capitalize on Appreciation
Since home values are high, appreciation is high, too. If a recession affects the housing market, home values will fall because people will no longer be willing to pay such high prices for homes.
By selling while appreciation remains high, you can enjoy greater profits than you otherwise would.
3. Seller’s Market
By putting your home on the market now, before a recession hits, you can sell for a higher price and enjoy the current seller’s market, where buyers compete for scarce inventory.
When the housing market favors buyers, the homes that are considered “dream homes” (such as single-family homes in desirable neighborhoods, with excellent school districts) will retain their value, selling at or close to asking price.
Homes that have one or more undesirable features (such as those in need or repair) won’t be able to meet asking price. Selling now means you’ll be able to unload a home that needs work without having to sacrifice on price.
4. Mortgage Rates Are Low
Mortgage rates also favor sellers at present, because they’ve fallen from the higher rates of the last 18 months.
When it’s cheaper for buyers to obtain a mortgage, people who may be hesitant to buy a house over financial worries may be more likely to bite, knowing they’ll save money on mortgage payments.
See How Much You Could Get For Your Home
Since it’s critical that you get as much money for your existing home as possible, these four seller’s advantages suggest that now is a more favorable time to sell than in the short-term. You don’t want to miss out.
To see how much you could get for your home, contact HomeGo. Our experienced agents can give you an offer for your home, and you could sell in as little as one week. HomeGo never charges commissions or fees, meaning more money ends up in your pocket.