Are you thinking about selling your home? If you’re on the fence about doing so, keep reading. The last quarter of 2019 will likely be the best time to sell your home over the next few years.
The experts at Pacor Mortgage have compiled a list of reasons why you should sell now instead of waiting until 2020.
Values Have Peaked
In reality, housing prices in the US peaked in the first quarter of 2017, according to the Federal Reserve Bank. While the housing market does ebb and flow depending on where you reside, the overall US market is on a downturn. To get the most out of your home’s value, consider selling now as the next peak is about a decade away.
Higher Interest Rates
Rates are still low, historically speaking, but are projected to rise to 5.5% by the end of the year and continue to increase into 2020. Consistently climbing rates results in homebuyers paying more for the same house than they would even six months ago. Additionally, sellers will need to lower the home price to counter-act the interest hike to make the home more attractive to buyers.
Supply is currently higher than demand in the housing market, putting the buyer in the driver’s seat when it comes to negotiations. This not only affects the buying price, but also home inclusions and escape clauses in the contract.
An averages real estate trend is seven to fifteen years. In 2005, the last housing bubble started to burst and didn’t bottom out until 2011. The last uptrend ran from 2011-2017.
If you don’t decide to sell now, plan on waiting at least a decade to receive any return on investment on selling your home. Asking prices 20-25% under the home values are becoming more commonplace, especially in major metropolitan areas. With housing inventory expected to be in double digits by 2020, the advantage will definitely be in the buyer’s court.
Harder to Get a Mortgage
When home prices fall, lenders need to cover their bottom line and risk factors. This results in higher fees, more paperwork, and better creditworthiness. It also will take more buyers out of contention, increasing supply versus demand even further.
Time to Optimize
If you want to sell your home at a reasonable price, now is the best time to cash out and maximize your capital gains before home prices fall any lower. Acting now will also allow you to access lower interest and mortgage rates on a new home.
If you’re in need of a conventional loan, down payment assistance, or mortgage financing, you can trust the experienced professionals at Pacor Mortgage. Give us a call today at 773-881-7744 to set up an appointment, or visit our website to learn more about how our services can assist you.
2019 Pacor Mortgage Corp.
Loan officer NMLS #: 208731. Loan inquiries and applications in states where I am not licensed will be referred to a Pacor Loan Officer who is licensed in the property state. Pacor Mortgage Corp. is located at 14930 S Cicero Ave, Oak Forest, IL 60452, Phone 773-881-7744 (NMLS #120945). Pacor Mortgage Corp. is an Illinois Residential Mortgage Licensee #MB.0000892 (IDFPR, 100 W. Randolph Street, 9th FL, Chicago, IL 60601, ph #888-473-4858). Pacor Mortgage Corp holds additional licenses in the following states: FL #MLD1075; IN #DFI13177; OH #MB.804151.000; PA #43855; WI #120945BA; MI #FL0828, MI #SR1130, CO, and CA.This is not an offer for an extension of credit. Any of the advertised products may be discontinued at any time. Information and pricing are subject to change at any time and without notice. Pacor Mortgage Corp. is not affiliated with your current lender, nor is it an agency or extension of the Federal Government, Fannie Mae, Freddie Mac or HUD.