Whether you’re into real estate or not it’s hard to ignore all the news about how hot the real estate market is right now. In California there is even a housing shortage that is fueling existing home sales. But as the saying goes, “what goes up, must come down” and there’s always the threat of a downturn. So, should you sell your house now while the market is good, or is it OK to wait and possibly gain more equity?
According to the 2018 edition of The Housing and Mortgage Market Review, home prices will continue to rise for the next couple of years, with annual increases of 2–6%. This seems to imply that most housing markets are at a low risk for a downturn.
This means that according to these sources if you sell your house before 2020, you’ll likely still make a great profit. Although the news is good you shouldn’t rely on market trends alone. For more accurate information it is better to continue monitoring how much your home is worth verses how much you owe on it, so you can continue to have a real feel for how much equity you have.
In this kind of “sellers market” neighborhoods that were formerly considered less attractive because of location or proximity to highways become more attractive. Determined buyers are willing to compromise for an unconventional area if it means they can snatch a house. So, even if you think you live in an unpopular neighborhood or that your home isn’t what buyers are looking for, think again. Maybe now is your perfect time to sell.
If you do decide to take advantage of the hot market and want to sell your house now your best bet is to partner with a good agent. A good agent will make the whole experience a lot easier.