If you have been wanting to sell your house for a while but just couldn’t get into favorable conditions, 2018 is an opportune time to sell it. Here are the top 5 reasons why:
Reason #1: Low inventory
If you know about the concept of supply and demand, you’d know that when something is in short supply, its value tends to increase. The REALTORS® Confidence Index Survey showed that low inventory in the homes for sale has been a major issue affecting transactions. This puts sellers in a position of advantage because as the number of homes for sale is low, the value of those that you could put up for sale will swell. You could also take note that Historical NAR data shows that housing prices appreciate by 5% when supply falls below 6 months. That means that you could expect the median prices for housing to be higher.
Reason #2: Stronger job market
It’s the American dream to own a house, and there’s a list of gains that a homeowner has such as tax credits, equity building, and just the simple but joyful experience of finally having a house that they can call their own and customize to their heart’s desires. These advantages will be more appealing now that consumer confidence has risen. This is caused by a decrease in unemployment and an increase in wages. These favorable conditions may propel buyers to invest in the housing market.
Reason #3: Strong demand for housing
Based on the responses reported in the September 2017 REALTORS® Confidence Index Survey, buyer conditions were rated “stable” to “very strong” in all states. In the midst of low interest rates, rental appreciation, improving the job market, and the general confidence in the economy, the demand for buying houses is strong in this time. There has also been a reported decrease in the expected number of days it takes to sell homes. In September 2017, it took just 34 days for properties to stay in the market.
Reason #4: A spike in housing prices
As mentioned in the previous passages, short supply tends to result in an increase in value. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. According to NAR, the median price of single-family homes sold in August 2017 is $255,550, which is 5.6% higher than a year ago. If you’re a seller whose property value dropped during the recession, you could benefit from these high housing prices.
Reason #5: Renting is becoming less affordable
Another thing that could benefit you as a seller is the rising rent prices. According to NAR, over the years, and in many parts of the country, specifically in the Northeast, South, and Midwest regions, it’s cheaper to buy a house than to rent one. This drives buyers to opt for owning a property rather than to have their money put into something that would not build their equity.