Are you looking to sell your home in 2018? If not, have you considered it? Real estate analysts say maybe you should! Experts predict that the supply of houses will not be able to keep up with the demand, and Florida looks to be particularly strong, with both current residents and incomers looking for new home inventory, which remains tight.
“I’m confident 2018 will be just as strong if not stronger than last year, especially if interest rates stay where they are today," said Mike Artelli, the incoming president of the Space Coast Association of Realtors, "Sales prices continue to rise, interest rates are low, and appropriate lending policies are in place," he continues,. "Combined with a strong employment base, 2018 continues to look good."
While mortgage rates aren’t forecast to see a significant jump this year, they are expected to increase going forward. The Mortgage Bankers Association predicts 30-year fixed-rate mortgages will rise to 4.6 percent this year, and possibly up to 5 percent in 2019, from there they could reasonably be expected to go as high as 5.3 percent in 2020.
Increasing interest rates are a sign of a healthy economy, but the fact is they can eliminate some potential homebuyers from the market. Our current low rates serve as a catalyst for many to start the house hunting journey sooner rather than waiting another year, or even another season. As interest rates continue to rise, you’re less likely to see as many bidding wars as you do currently, welcome news for buyers, but not for sellers. This means if you are thinking of listing your home any time in the near future, the sooner the better. Not only will you capture the market of buyers hasty to close a deal, but if you're buying after you sell, you too will benefit from those lower rates.
Other factors that make it a great time to sell include record levels of consumer confidence, low unemployment, and stock market surges, all setting the stage for high home buyer turnout in 2018. The Fed has projected that the unemployment rate will drop below 4%, and the domestic stock market is enjoying a nearly unprecedented rally. The housing market is already reflecting this boom: Existing-home sales are soaring at a strong pace, reaching 5.6% in November 2017 (the most recent month for which data are available).
The key to benefitting from the seller’s market this year is not taking buyers for granted. They should still expect reasonable care and effort from sellers, and will want to see a property that was made ready for market. While they may be willing to overlook a dated kitchen, things such as personal clutter, lack of maintenance and low curb appeal can still turn buyers off. If you do decide put your house on the market, take the process seriously, make small, impactful improvements, and you’re likely to see ample interest.
At Setco, we offer a full range of services to home sellers. Our friendly title professionals can help you before, during and after the home selling process. Please click below to access our seller page and learn about the services we can provide you as you sell your Florida home and/or purchase a new one!