If you are thinking of selling your house, you may want to do it now. Experts predict that the demand will surge up as soon as the issues with pandemic are controlled.
Despite the sudden turn of events, 2020 will still be the best time to sell your house on the market and don’t wait to pass time.
Home prices will still continue to rise this year, although only slowly. This is good for homebuyers because they will less likely encounter issues with affordability. Compared to previous years when there was a deficiency in supply, there will be a balance in the housing demand and supply this year.
If you have acquired your property in the past years and still want to keep it, then don’t sell it at least for now, but you can always wait for another five years to think about selling. However, if you have been thinking quite some time now to sell your house for cash fast either this year or next year, then don’t wait anymore.
Here Are The Reasons Why You Should Sell Your House In 2020:
- There are still new buyers in the market.
A lot of new buyers are now probing in the market and it shows that they are most interested in the entry-level and midrange home prices in the listings. If your house is in a higher price range, you would most likely be seeing less offers compared to previous years.
The millennials are still on the lead of age groups in the wave of new homebuyers and most of them are first-timers. Depending on the location, the latest generation of adults can be seen inquiring in the market. The Generation Z who were born from 1996 to 2010 are still too young to enter the market as new players.
But there already are a few of them buying homes where prices have not grown dramatically.
- Low interest rates are still expected to be a trend.
Throughout 2020, we are looking at low interest rates to remain. This will help the buyers especially the first-time homebuyers to easily obtain financing for the purchase of their property. The Federal Reserve intends to leave interest rates as is in 2020 at the target range of 1.5% to 1.75% since December 2019.
While this recommendation has a big impact on mortgage interest rates, lenders still base the interest rate of their offer to the individual and the market. In January, the interest rate was 3.72% for the 30-year mortgage. Experts are looking at the rate to stabilize around 3.8% this year—and that is still low enough to motivate homebuyers in the market. It is like setting the base aimed to a slow but continuous rise in home sales.
Low interest rates do not only encourage the potential buyers of your home, when you search for your next property, the possibility is you can likely get a low interest rate too.
- You gain high equity
The longer you stay in your home consistently paying your mortgage loan, the higher equity you build relative to the increasing value of your property. The higher the equity, that means the more profit you’ll likely make when you sell your house. The more profit you get, the larger down payment you can provide for your next home—it’s a domino effect.
If you have high equity, you are most appealing to mortgage lenders and home sellers should you wish to buy a new home.
- 2021 is a different story
According to a survey conducted by the National Association for Business Economics in December 2019, the respondents, 53 professional forecasters, said that there is a 66% chance of recession by the middle of 2021.
Although, there is nothing to be afraid of a huge housing crisis unlike from the last recession that started in December 2007 to January 2009. Home values may drop a bit, foreclosures may increase, the economy may become uncertain—especially where there is job loss—but as long as you are still capable of continuing to pay for your mortgage, then you are fine.
However, when there is a recession, you would not want to put your house on sale at a lower price than its value, unless you really need to. So as early as now, if you have been lingering in the thought to sell home fast, consider doing it this year.
You may want to prepare your house now, do some upgrades before putting it on the market, and then find your dream home, while you still have time this year. Or, if you don’t have the time to do all that, you may want to consider selling to a reputable “Cash for houses Los Angeles” investing company like Mrs. Property Solutions. They are still in business and would love to help by giving a fair cash offer.
Date Of Update: 11 June 2020, 08:24
