Why you SHOULD sell in 2019

Here’s a great article from US News and World Reports by Devon Thorsby. I was going to write something up similar, but this hit all the key points, so I thought I might as well just repost it.

Few people are predicting that 2019 will be a record-breaking year for home prices.

But relatively speaking, 2019 might be the best time for you to put your house on the market. Especially if you’re on the fence about selling this year or next, Nick Ron, CEO of House Buyers of America, recommends going with the devil you know rather than the devil you don’t.

“I think it’ll be better than 2020 and 2021 – who knows what’s going to happen in those years,” Ron says.


Housing Market Expectations in 2019


Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve. In 2019, consumers shouldn’t expect homebuyers to flood the market again and drive prices through the roof, but it’s also unlikely to be a crisis for home sellers.

If you bought your house in the last year or two, still love it and don’t want to part with it, go ahead and wait another five years before revisiting the thought of selling. But if you’re weighing your options to sell, considering selling this year or maybe the year after, don’t play the waiting game. Here are four reasons to sell your house in 2019.

New buyers are still entering the market. As interest rates rise, some buyers will hesitate to make an offer on a home or apply for a mortgage, so be ready to see occasional drops in buyer activity. And if your house is at the higher end of the price range in your market, you should expect less buyer interest than before. Ron notes the combination of rising mortgage rates and home prices exceeding buyers’ budgets are what has caused the slowing of homebuyer activity in recent months.

But with available housing inventory remaining low, even with rising interest rates, buyers who are ready to make a purchase will still shop for homes. The biggest wave of new homebuyers will be among millennials, who are mostly first-time buyers. In a Harris Poll survey of 2,000 U.S. adults commissioned by real estate information company Trulia, more than one-fifth of Americans between ages 18 and 34 said they plan to buy a home within the next 12 months. Already, millennials make up the largest share of homebuyers at 36 percent, according to the National Association of Realtors, which released the number in March 2018.

The bottom line: While houses may sit on the market for a few more days on average compared with 2017 when the market was white-hot, buyers remain active and it’s still possible to profit from your home sale.

Interest rates are still low-ish. Mortgage interest rates are rising, reaching 4.87 percent in November for a 30-year, fixed-rate mortgage, per data from Freddie Mac. While rates are at their highest level since February 2011, they remain much lower than the historic high of more than 18 percent in 1981.

It’s important to keep in mind that while mortgage rates tend to mirror the Fed’s interest rate activity, mortgage rates are based on the market in that moment, your financial status and the property you’re looking to purchase.

[Read: How Moving to a New Home Affects Your Taxes.]

Just because the Fed raises rates at one meeting doesn’t mean mortgage rates will follow that exact pattern. “Not every Fed increase is passing on (to) a mortgage rate,” says John Pataky, executive vice president and chief consumer and commercial banking executive at TIAA Bank.

A sudden leap in mortgage interest rates is unlikely in 2019, though Pataky notes that you should be ready to see rates continue to climb. “We do expect over the next 12 months that mortgage rates will continue to drift higher,” he says.

If you’re looking to get the lowest interest rate possible on your next house, try to make a deal sooner rather than later.


PauseUnmuteLoaded: 0%Progress: 0%Remaining Time -0:15Fullscreen


You have high equity. Homeowners who bought during the recession or shortly after benefitted from historically low interest rates and, up until around 2015, lower home prices that were still in recovery mode. If you fall into that category, your home equity has risen with nearly every mortgage payment, each renovation you made to the house and all the other houses on the block that sold for a higher price.

The higher your equity in your home, the more you net from the sale, which can easily go toward the down payment on your next house. The larger your down payment, the better you look to lenders and the lower your interest rate will be, and the less likely you’ll need to increase monthly payments with private mortgage insurance.

[Read: Is Your House Too Big for You?]

Selling in 2019 vs. 2020. If not selling your home in 2019 means putting your house on the market in 2020, the sooner option is the best one. In a survey of 100 U.S. real estate experts and economists by real estate information company Zillow, released in May, almost half expect the next recession to occur in 2020. Another 14 percent believe the recession will hold out until 2021, while 24 percent of panelists expect the recession earlier – sometime in 2019.

Whether you believe the recession is imminent or a long way off, current real estate patterns indicate a sudden upswing in activity or prices is unlikely in the near future. Real estate markets tend to operate on a cycle of their own, the length of which varies by market but can be between 10 and 16 years total and flow from a seller’s market to a buyer’s market with a period of balance in between.

“It doesn’t look like there’s anything on the horizon that’s going to cause a big spike in home prices or increase demand dramatically,” Ron says.

Sales are HOT in Northern Virginia!

It’s been a pretty busy time here in Northern Virginia.  I apologize for not personally writing this article but I just knew I had to get it out–besides I am extremely busy 🙂  Inventory is low and we have so many buyers out now.  We are seeing some Open Houses with 100 guests. Then w/our listings, we are seeing multiple offers!  If you’re sitting on the fence waiting to buy, you should get off of it as soon as you can…call me!

March Surge Contributes to Significant Growth in First Quarter Residential Market

The first quarter of 2017 illustrates another year of significant market strength. With particularly strong sales in March, the first quarter of 2017 outperformed the prior year first quarter by 7.8 percent (rising from 21,213 transactions to 22,859). Likewise, first quarter volume grew year-over-year, from $6.492 billion in 2016 to $7.287 billion in 2017. The 12.2 percent increase in volume resulted from both significant gains in pace and steadily rising median prices. Median price for the first quarter rose 4 percent from 2016 to 2017, from $249,900 to $260,000.

Each month of the first quarter outperformed its prior year benchmark in sales. Annualized pace, the sum of all transactions for the preceding twelve months, rose for the tenth consecutive quarter. Relative to the prior quarter, the annualized measure was up 1.4 percent.

Year-over-year, first quarter home sales increased in all price bands except the lowest, where limited inventory typically restricts market activity. Sales pace and median price increased in every region of the state.

Though 30-year and 15-year fixed mortgage interest rates remain relatively low, they each continued to rise in the first quarter. The Federal Reserve Bank announced a raise in the key rate in March, acting on strong national jobs reports. The average rates for 30-year and 15-year fixed mortgage interest rates in the first quarter were 4.17 percent and 3.39 percent respectively. The prospect of rising rates may continue to spur greater activity in 2017.

According to 2017 Virginia REALTORS® President Claire Forcier-Rowe, “The start of 2017 has underscored the sustained strength of Virginia’s housing market and also illustrated the effects of evolving economic factors. Prices have inclined steadily as eager buyers enter the market and, with greater inventory in March, sales surged with their pent up demand.”

 

http://www.varealtor.com/sites/varealtor2.com/files/Virginia%20Home%20Sales%20Report.Q1.pdf

Inventory is LOW in Clarendon and Courthouse

So after a robust finish in our market at the end of 2016, inventory is LOW in Clarendon and Courthouse.  It’s definitely a sellers market right now, there are so many buyers out there and I have no inventory seemingly to show them.  As an example I “farm’ expired listings, in Arlington, VA there are hardly any expired listings.  Clarendon and Courthouse continue to be a very desirable area to move to.  It’s proximity to Washington, DC and quality of life has left it a highly sought after place to live.  You are far enough yet close enough.

If you’re willing to go out to Fairfax County, there are some real deals out there, I think there’s a better quality if life also, but it’s definitely not as convenient as Clarendon and Courthouse.