A housing sector rebound during the second half of 2019 appears to be facing some uncertainty as the second quarter of 2020 approaches. With prices at their highest level since the crisis of 2006, perhaps now is the right time to act if you have thought about selling your home for some time now. The Global economy is looking somewhat bleak with various risks showing up as we will discuss. Some analysts feel that now may be a good time to get out before the wave breaks.
How the housing market looks right now
The housing shortage and lucrative borrowing rates may seem to be pointing in the direction of further property price hikes but at a far more moderate pace. There are even some indications that after a record 96 months of increases an economic slowdown is inevitable. One of the first things that such a slowdown would bring is a drop in general spending and slackening of housing prices.
Unemployment is currently at a 50-year low and even older homeowners are preferring to hold onto their homes rather than to move into a retirement settlement or moving in with their children. However, first-time buyers are declining as home affordability seems to be eluding them. Price appreciation for homes has exceeded wage growth, something which seems too good to last.
One growing concern for the property market is the outbreak of COVID-19. There are concerns about how it will affect potential home buyers and how the property market will react to the threat. One scenario is that house hunters might reconsider buying right now amid fears about how it will affect their future job prospects. Other scenarios have people from Asia scrambling to invest in the U.S. market.
Fears of price correction in certain areas
According to a report by J.P. Morgan, there are areas in the U.S. where there is a high likelihood where price correction is highly likely because of rapid price gains that they experienced over the last five years. Las Vegas and Central California, are some of the areas named in the report where the previous rapid price growth could turn around into price correction.
Reasons to sell in 2020
If you bought your home during the housing crisis you have been building equity on it. Selling in 2020 would mean that you are avoiding any future uncertainty and the capital collected will give you the down payment for a bigger home, the chance to add to your savings, or to cover other pending expenses.
It seems like the Fed is going to continue to keep interest rates low in 2020, and a fixed-rate mortgage is expected to be at an average of 3.8% through the year. Traditionally, lower interest rates make it easier to sell a home, something that may prove exceedingly difficult if anything were to change and turn this around.
If you are finding it difficult to keep up with mortgage repayments and other costs of maintaining your home, now is the right time to take advantage of the higher prices in your area and to downsize.
Downsizing or upsizing is another reason why you could sell your home in 2020. Prices are currently high and if you sell now you will have more money to place as a down payment for your next property.
Don’t let sentimental reasons stop you from making the right decision now if you have been toying with the idea, no matter what the reason is, then now is the time to sell your home, while prices are still good.
How to get cash for your property in Stanislaus County
There are many reasons why you may need to make a quick sale right now and these may not even be market-related.
Whether you need to:
- settle a divorce agreement
- need cash for a sudden illness in the family
- want to relocate fast
- need to sell an inherited property
- want to avoid a foreclosure
Valley Cash Offers gives you cash for your property and guarantees that you need to make no repairs nor will you be charged any closing costs or fees whatsoever.
As licensed professionals Valley Cash Offers have purchased millions of dollars’ worth of real estate. You and your family are guaranteed to receive a fair offer for your house within 24 hours made on statistics based on your neighborhood. The price is for the house as-is with no inspection needed and you save the time and hassle of trying to sell through an agent.
With Valley Cash Offers you are guaranteed to get your money fast with a close within 7 days of your accepting the offer.
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