Should you sell your house in 2019? By all indications, if you are wanting to sell, 2019 will be a good year to do it. According to U.S.News, “2019 might be the best time for you to put your house on the market. Especially if you’re on the fence about selling this year or next,” it’s better “going with the devil you know rather than the devil you don’t.” So here’s what you need to know about selling a Long Island house in 2019.
Home Prices Are Still Rising, But Slowly
The first thing you need to know about selling a Long Island house in 2019 is that home prices are still going up – though at a slower rate than previously. During 2017 and into 2018, home prices made a huge leap of 10%. While home prices are expected to continue increasing throughout 2019, it will be at a much more modest rate, somewhere around 1%.
This slowing increase in prices can be attributed in large part increasing mortgage interest rates and the general economic uncertainty that obtains right now. The upshot is that many buyers remain uncertain about purchasing a home, and, as a result, price increases are slowing. New construction, though, is a different matter, with plenty of eager buyers and prices still moving upward at a good clip.
This is all good news for sellers. First, when you sell your house, you are likely to make a decent profit. But keep in mind that you may have fewer offers because some buyers are being priced out of the market. And this means that you have to do more to stand out from the competition. The best course is to rely on your agent for preparation and marketing. (Find out more by calling (631) 357-4819.)
In addition, you will have to be patient about offers, not accepting the first one that comes along. If you wait long enough, though, you will probably get an offer at or near the price you need.
Interest Rates Are Going Up
Another crucial thing you need to know about selling a Long Island house in 2019 is that mortgage interest rates are going up. They’ve been at a standstill for a few years, but are now on the rise. Financial experts expect interest rates to increase to around 5% for 30-year mortgages and about 4.4% for 15-year mortgages.
It’s been nearly seven years since mortgage rates were at this level. This is actually good news, though, indicating a stronger economy. In order to stabilize this strong economy and stem rising inflation, the Federal Reserve has increased short-term interest rates. These increases then make their way down to banks and mortgage interest rates.
Again, rising interest rates may mean you will have to wait a little longer to get a good offer on your house. It may also mean you can sell your house much quicker and get more offers. The reason for this more likely scenario is that buyers are eager to make a purchase before interest rates get any higher. The fact that buyers want to beat further increases can work to your advantage as a seller.
The Millennials Are Coming
What you also need to know about selling a Long Island house in 2019 is that there will be a huge influx of new buyers – millennials. They are maturing and settling into solid careers, and they are ready to buy homes. Among millennials, the average household income has risen to over $80,000, so they are seeking to buy first homes in middle-and upper-middle-class neighborhoods.
While baby boomers are retiring and downsizing, millennials will make up the majority of larger home buyers. Predictions are that in 2019 they will take the lead in the sheer number of mortgages at about 45%. As a seller, then, you’ll need to market to millennials.
What you will need to do is partner with an agent who is savvy in online marketing because millennials are certainly Internet savvy. To cater to millennials, here’s just some of what you will need to keep in mind about them:
- Quality trumps size – Most millennials are more concerned about the sustainability and usability of living space than they are about sheer quantity. For a seller, then, de-cluttering and staging become even more important.
- Location is paramount – Millennials are also highly conscious of location on the larger scale. They prefer city life at a lower cost of living and pay close attention to things like walkability and access to public transportation.
- Online shopping matters – They also invariably begin home shopping online. That means you will need plenty of high-quality listing photos and a sound online marketing strategy. This strategy should include virtual tours, which your agent can help you with.
- Low-maintenance and eco-friendly are big – Finally, millennials are looking for homes that are low-maintenance and that are environmentally friendly. So to market to millennials, you’ll need to ensure that your house is energy-efficient and is equipped with smart appliances.
2020 Looks Shaky
The final thing you need to know about selling a Long Island house in 2019 is that 2020 doesn’t look all that promising at this point. “If not selling your home in 2019 means putting your house on the market in 2020, the sooner option is the best one. In a survey of 100 U.S. real estate experts and economists” by Zillow “almost half expect the next recession to occur in 2020” (U.S.News).