With available housing inventory remaining low, even with rising interest rates, buyers who are ready to make a purchase will still shop for homes. While houses may sit on the market for a few more days on average compared with 2017 when the market was white-hot, buyers remain active and it’s still possible to profit from your home sale.
Summer in Austin
The Real Estate market is heating up with the weather! Last year we had 31 home sales from June - September. If you have a home to sell this year, there is no doubt that right now is the perfect time to put it on the market for sale. Home sale conditions are extremely good in the Austin area and your chances of selling quickly and at top dollar are excellent. Here's why now is the perfect time to sell your home:
- New buyers are still entering the market.
- Interest rates are still on the lower end.
- You have high equity.
- Selling now will be better than waiting till 2020.
New Buyers Are Still Entering the Market
Interest Rates Are Still Low
It’s important to keep in mind that while mortgage rates tend to mirror the Fed’s interest rate activity, mortgage rates are based on the market in that moment, your financial status and the property you’re looking to purchase.
A sudden leap in mortgage interest rates is unlikely in 2019, but if you’re looking to get the lowest interest rate possible on your next house, try to make a deal sooner rather than later.
You Have High Equity
Homeowners who bought during the recession or shortly after benefitted from historically low interest rates and, up until around 2015, lower home prices that were still in recovery mode. If you fall into that category, your home equity has risen with nearly every mortgage payment, each renovation you made to the house and all the other houses on the block that sold for a higher price.
The higher your equity in your home, the more you net from the sale, which can easily go toward the down payment on your next house. The larger your down payment, the better you look to lenders and the lower your interest rate will be, and the less likely you'll need to increase monthly payments with private mortgage insurance.
Selling in 2019 vs. 2020
If not selling your home in 2019 means putting your house on the market in 2020, the sooner option is the best one. Current real estate patterns indicate that a sudden upswing in activity or prices is unlikely in the near future. Plus, often times an election year can bring uncertainty and home sales can dip by up to half a percent.