Let's face it - we've been in a fairly hot seller's market for almost 2 years. There are some indications that the seller's market is cooling a bit, so it might be a smart move to sell sooner rather than later. In this video we unpack three reasons the seller's market may be softening, and why it might be a good idea to sell in 2018.
Reason #1: Interest rates are still holding steady, but are expected to rise by the end of 2018.
We may not be seeing the 3% interest rates that we once were, but interest rates are still in the 4's, which is incredibly low, in comparison to historic interest rates. Lower interest rates attract more buyers to the market, which means more buyers visiting your home. However, interest rates are expected to top out above 5% by the end of 2018, so it might make the most sense to sell prior to those rates going up. Many buyers are aiming to purchase sooner rather than later, in order to beat the increase in interest rates.
Reason #2: Inventory levels are incredibly low, but are expected to rise by the end of 2018.
For the past 12-24 months we have seen historically low inventory levels. When we couple that with increasing buyer demand, this makes 2018 an optimal time to sell. However, inventory levels are expected to creep up towards the end of the year, with more and more sellers realizing it's a great time to sell. So if you are looking for the best seller's market in order to sell your home for the most amount of money with fewer homes to compete against, it could make sense to sell sooner rather than later.
Reason #3: Home price appreciation is expected to level off.
In the past 12-24 months, we have seen record levels of price appreciation in home values. We are still expected to see higher than average rates of appreciation through the end of the year, but 2019 and 2020 are expected to see more moderate rates of appreciation.
If you have had thoughts of selling, now could be an optimal time, as there are some early signs the seller's market could be cooling off. Of course if you have any questions at all, please feel free to post them in the comments down below, or reach out to us directly!