With real estate trends pointing to a slower sales pace in 2019, how can you entice sellers on the sidelines to make their way into the housing market?
2019 Might be Slower, but Trends in 2020 & 2021 Are Unknown
Put simply, it is better to sell on the tail-end of a record-year, rather than wait for upcoming years which may be nowhere close. Barring a major event, market changes typically happen slowly over time. Though interest rates are slowly rising, slowing sales, no crisis looms. Currently, home prices and demand are both holding steady.
Sooner is Better
In a recent survey of real estate experts and economists by Zillow, about half expect a recession to effect real estate trends in 2020, while 14% expect it in 2021. One-quarter expect the recession to sneak up sometime this year, making selling sooner as wise move for those who know they’re not staying in their house for the long-haul.
New Buyers Still Need Homes
Though the sales pace is slower, new buyers still need homes in a market with limited options. Millennials, the biggest segment of the market, are moving out and up, keeping the real estate realm active and enticing for sellers.
Interest Rates Are Still Low
Despite increases last year, interest rates are still at historic lows. In November, a 30-year fixed-rate was just 4.87% based on data from Freddie Mac. This is a far from those around 7% in the 90s, and even farther from the gut-wrenching historical, 18+% highs of the 80s. Though rates tend to mirror the Fed’s rate activity, they don’t follow that exact pattern, also reflecting the current market, the property purchased, and the buyers’ credit.
Don’t let false concerns over expected real estate trends put a damper on your business. Stay on top of things with the marketing tips and tools of Properties Online today.