Buying or Selling? Check the Latest Expert Advice First
By John Voket
Devon Thorsby at USA Today recently reported that in 2019, consumers shouldn’t expect homebuyers to flood the market like they did last year and drive prices through the roof, but Thorsby says the coming year should not generate a lot of angst for home sellers, either.
Nick Ron, CEO of House Buyers of America told Thorsby the combination of rising mortgage rates and home prices exceeding buyers' budgets are what has caused the slowing of homebuyer activity in recent months.
But with available housing inventory remaining low, even with rising interest rates, buyers who are ready to make a purchase will still shop for homes. The biggest wave of new homebuyers will be among millennials, who are mostly first-time buyers.
In a Harris Poll survey of 2,000 U.S. adults,Thorsby reports more than one-fifth of Americans between ages 18 and 34 said they plan to buy a home within the next 12 months.
Amy Fontinelle at Investopedia.com says if you're thinking about selling:
- By looking at the transaction from a purely financial perspective, you'll distance yourself from the emotional aspects of selling the property.
- Although real estate agents command a commission, Fontinelle says it's ill-advised to try to sell your home on your own, especially if you haven't done it before.
- Fontinelle says don't worry too much about setting a price that's on the low side because, in theory, it will generate multiple offers and bid the price up to the home's true market value. In fact, underpricing your home can be a strategy to generate extra interest in your listing.
Rachel Stults at Realtor.com says with each passing month, experts say prospective sellers can expect the housing climate to shift a bit more in buyers' favor.
Realtor.com chief economist Danielle Hale told Stults if you're thinking about selling and don't want to compete with neighbors, list earlier rather than later.
Hale says this is particularly true in pricier markets, where inventory is increasing at a faster rate than more affordable areas.