Because millennials are entering the market, there has been a surge of buyer demand; this is great news for anyone who may be considering selling this year. In fact, according to Odeta Kushi, the senior economist for First American Financial Corporation, 2019 is aiming to be even more lucrative on this front than we’ve observed in the recent past. Why? Because -
the “largest cohort of millennials [will soon be] entering peak household formation and home-buying age,” says Kushi.
This will most likely have a huge impact on buyer demand across the nation. Yet, despite all of this positive news, the rumors that we are in a housing bubble aren’t completely inaccurate. The old saying, there is no time like the present, is one you definitely be keeping in mind.
That being said, the opportunity to earn the best possible deal for your home has not yet passed, but it will likely occur sooner than we'd like it to. The SP CoreLogic Case-Shiller Home Price Indices shows that price growth (which has been monumentally strong for several years) is slowly, but surely, moving in a downward direction.
However, don’t let recent talk of a market slowdown scare you off from seizing the opportunity to sell your home. Experts like Nick Ron (CEO of Home Buyers of America) agree that selling this year will yield far better results than doing so in years to come.
Here are a couple of the crucial reasons why:
1. Rates are still historically low.
This past Friday, the 30 year fixed rate was sitting at 4.125% at both UW Credit Union and Summit Credit Union. Though some may look at these rates and frown, they're honestly still incredible when compared to what buyers could obtain in the past. It’s also worth noting that rates are forecast to rise. Rates seem to get favorable slowly and then all of a sudden, they climb quickly. The stock market is approaching all-time highs, unemployment is at or near 40-50 year lows, and inflation is low, yet rates and markets are set by looking to the future. A change in any of the previous factors could cause rates to soar. Another wildcard in a global economy is Brexit, which itself could impact rates. Because of this, buyers are eager to lock in a low rate while they still can. This gives sellers an incredible amount of leverage.
After hearing rumors of a supposed market slowdown, many would-be sellers are choosing to hold off on pursuing their real estate goals. In the greater Madison area, we have 1.2 months supply of available homes and condos listed for sale currently (without accepted offers). Dane county has slightly more supply at 1.5 months. These both mean a “Seller’s Market”.* Yet for any sellers savvy enough to see the “bigger picture,” this means just one very important thing: less competition. It’s simple supply and demand—the less homes for sale in your market, the better chance you’ll have at selling quickly and for top dollar (provided you set your price correctly).
* A “balanced market” has +/- 6 months of inventory. Months of inventory is how long it would take all the current inventory to sell at the past years rate of sale, assuming no new listings came on or any current listings left the market. For our calculations here: months of inventory = available MLS single family and condominium inventory without accepted offers / the past 12 months sold volume X 12.
What does this all mean for you?
Well, it means that now is the time to sell if you're considering it. Delaying much longer could cost you dearly. The good news, as I’ve already indicated, is that our market remains strong for now. If you get off the fence soon, you will still have a chance at a great selling experience.
And, if you are thinking of selling, then I encourage you to take a look at what your home is currently worth by using this free home value calculator, which takes into account recent Madison sales: Enter your home address here to find out what your home is currently worth. This calculator will offer a decent estimate range of your home’s value. However, if you’re serious about maximizing your results, don’t hesitate to reach out for an in-person consultation.
I’d love the opportunity to give you an even better idea of what you could earn for your home. I’m very familiar with our national and local market, and would be happy to help you make the most of this opportune moment in real estate.