Today, I’d like to talk with you about next selling your home in 2018 vs. 2019.
This is the time of year when a lot of people who are thinking about selling their homes do some soul-searching. They ask themselves, should I put my home on the market this year, or wait until next year?
Predicting the future is a very tricky business, and so is timing the real estate market. Honestly, it’s really hard to say with any degree of certainty if it would be better to sell your home this year or wait til next.
However, recent volatility in the stock mark has made a lot of people jittery; inflation is picking up and mortgage interest rates are at a two-year high. Is this raising any red flags for you, market watchers? It sure does for me.
The fundamentals of the economy look pretty good at the moment, and nobody seems to be talking about a real estate market correction happening this year. This is great news if you’re thinking about putting your home up for sale this year.
What if you’re feeling lucky, and you want to roll the dice to see if the real estate market might be just as good, or even better, next year?
If you ask me, that’s taking a bit of a gamble. Now, it’s entirely possible that the economy will remain robust next year, the housing market will stay healthy with strong demand, and inventory will be super low like they are today.
Recession on the Horizon
When I read the tea leaves, it looks like there’s a significant chance the 2019 real estate market won’t be quite as frothy as 2018.
According to the Q3 2017 Zillow Home Price Expectations survey, the experts are saying there is a 52% chance the next recession will start by the end of 2019. Here’s a little excerpt from the survey press release:
More than 60 percent of experts say the next recession will have a major impact on the San Francisco and Miami housing markets, and at least half predict a major impact in Los Angeles and New York as well.
And then you have the head of the world’s largest hedge fund saying we are in a “pre-bubble phase” and that the chance of a recession before 2020 is 70%. I could go on and on, because there’s no shortage of predictions of a looming slow down of the economy.
When the recession hits—and it always hits—it’s just a question of how it will affect Silicon Valley, San Francisco, and Santa Cruz home prices. It might be a small correction, or it could be a big one. But why take a chance, if you don’t have to?
If you have the luxury of planning when exactly to sell your home, my advice is to strike when the iron is hot, and to go with the bird in the hand. 2018 is shaping up to be an amazing year to sell your home, and we may not see another like it for years to come.
If you would like to discuss selling your home or you have any questions, please feel free to reach out to me. I’d be happy to help!