The value of household equity in real estate has more than doubled since the 2012 housing crash! This number is according to the Federal Reserve. CoreLogic, a real estate data firm, reports that among households with mortgages, equity is at a record high. So, that’s great news, right?!
Well, nothing is 100%, but what you can count on is that right now there are key housing-market drivers that point to 2020 being a fantastic time to sell your home!
It’s expected that the economy will continue its upward mobility in 2020. In a recent survey with over four-dozen economists, less than one in five expected a recession to start by mid-2020. But after that, trouble may be on the horizon. In 2021, the same group predicts a 70% chance there will be in a recession. No one expects the same crash of a decade ago, but even a lesser recession can make it challenging to sell a home. Home values may become stagnant, due to rising unemployment. In a tough job market, people don’t typically have buying a new house on their minds.
Even if we get by the next few years without a recession, mortgage interest rates are also in a seller’s corner right now. Buyer demand is predicated on mortgage rates. The average interest rate in the fall of 2018 on a 30-year fixed-rate mortgage had risen to almost 5%. In this scenario buying is more expensive, causing demand to slow a bit. Currently, the 30-year fixed rate is back down to 3.6%. That’s very enticing for the buyers you want fighting over your home!
If you have the flexibility to consider a sale sooner than later, 2020 may be the right time for you. With eight years of a strong rebound in home values throughout the country, this could be a smart way to make a profit and move on!