Real Estate Corner: Why 2020 May Be the “Sweet Spot” for Selling
If you know you’ll be selling in the next couple of years, consider why selling in 2020 may be your best bet instead of waiting.
Across the country, homeowners’ equity is at record highs. In fact, according to the Federal Reserve, the household equity value has more than doubled since 2012, the bottom of the real estate recession. Median home prices have risen steadily (even robustly in many markets) during 2018 and 2019 with the national median home price now at $316,000 – a record high! Further, unemployment is at historic lows, consumers have more savings than before the recession, and the Millennial generation that has been putting off purchasing a home is now the largest group (at 37%) of home buyers.
Economists are expecting the economy to continue to grow in 2020, but a market correction (OK, we’ll say it), a recession, is expected by mid-2021 or 2022. By no means is anyone expecting a financial implosion like last time. It’s expected to be a relatively mild recession and homeowners and investors should be able to ride it out without much difficulty. If that does happen, be aware that home values may soften and buyers may hold off on purchasing.
Another key factor to consider is the presence of fantastically low interest rates. Clearly, the lower the interest rate, the larger your pool of potential buyers will be. The good news is that rates are expected to stay steady through 2020. Yet unforeseen circumstances such as a tariff or trade dispute, or even geopolitical unrest or military action could prompt the Reserve to raise rates to balance the economy.
The bottom line is, 2020 is a great year to sell your home. Perhaps despite some economic predictions, 2021 or 2022 will be as well. But if you’re considering selling in the next couple of years, it makes sense to sell now instead of waiting, while the conditions are still in your favor.
Contact us today for a detailed analysis of your property at Lucky@RussLyon.com or 602.320.8415.