January 8, 2020 | 4 Minute read
According to the Federal Reserve, the value of household equity in real estate has more than doubled since the housing low that occurred in 2012. In fact, among households with a mortgage, data firm CoreLogic reports that equity is at an all-time high.
That all sounds good, right? At the risk of sounding like a buzzkill, there is a growing risk in news that good. As with many things, the national economy operates in cycles — and with it, the real estate market rises and falls. Strong gains in home values for most of the country for this many years can bring about a common physiological condition known as recency bias, the presumption that whatever you have been experiencing recently will also continue into the future.
In other words, many potential sellers who have a soft goal of moving sometime in the next few years will just assume that the market will be as good as it is right now. And it may be, but it may not be — it’s hard to tell. One thing that’s for sure is that, right now, there are key drivers to the housing market that suggest the coming year could be a great time to sell your home.
Wondering if you should sell your house in 2020? Here are 3 ways to know.
It seems obvious, but that’s because it’s just that important. Families with small children who live in urban areas have more to consider than a lack of closet space of how much of their space is taken up by large baby gear. The very neighborhood that was the perfect fit for couples or even families with very small children may be less than ideal once it’s time to start thinking about schools.
Outgrowing your home tops the list of the reasons people sell their home. While the mortgage for a new home may be daunting, so is the going tuition rate at most private schools. Searching for a home in a great school district can give you the space you need, without sacrificing your child’s education. If your family needs more space or a better school district, it may be time to sell your home.
With rent going up and mortgage rates going down in 2019, many renters thought they would try to buy their first home. Ask any one of them, and they’ll likely tell you the same thing — they are having trouble finding homes for sale in this price range.
If you’re considering selling your home, this is good news for you, since it means that home values are high. It has been estimated that there is up to 20% fewer entry-level homes currently on the market today than there were last year. Savvy investors snagged these properties for a steal and have turned them into rental properties, making the current market primed for sellers — especially if you have a starter home to sell.
While it’s always a good idea to be educated on what’s going on in real estate at a national level, it’s so important to remember that real estate is extremely hyper-local. What does that mean for you, if you’re trying to decide whether you should sell your home? Simple. You will need to tap into the wisdom of a local, experienced real estate agent who has the inside scoop on local homes such as yours that have sold recently — as well as the ones that may be coming on the market soon and are, therefore, your competition.
Local trends are always driven by the buyers and sellers in a specific market, so it’s important to work with someone who will know how to help you sell your home.
At Reali, we’re proud to offer superior service, local agents, and advanced technology. Reali offers sellers faster closings, the best return on your investment, and real estate for a more civilized age.
Selling your old home while looking for a new one? We can help! Reali Trade-In takes the hassle out of home buying and selling. Even better, it’s sure to save you money