Have you been considering selling your home for some time now, but never felt like the timing was right? The housing market has been sizzling the past few years, but it is headed for an inevitable cooldown. Houses on the market today have a slightly inflated price and value, which makes it the perfect time to take advantage before they drop! Check out the rest of this article to learn why you’ll want to sell before the housing market slows too much!
Housing Market is Slowing Down
In 2008, the global economy declined across the board as the world headed towards a recession. This period is now being referred to as The Great Recession, undoubtedly the most-impactful recession in modern history. Because the U.S. economy was suffering, the housing and real estate market also experienced a decline.
There is a direct correlation between economy and housing. When you consider the ramifications of having less financial flexibility in the economy, there’s no wonder that home values tanked! For a four-year period starting just before 2008 and ending just before 2012, the average value of homes in the U.S. slowly dropped.
Thanks to swift action and policy implementation by lawmakers, the major effects of The Great Recession started to ease up by 2012. At this point, the average value of homes started to slowly rise back to what they were previously worth. By 2016, homes were back to their original value before The Great Recession.
It hasn’t stopped there, though! In fact, the average value of U.S. homes has increased by almost 15% since 2016! During this same time, homeowners have been eager to remodel now that their property has a higher value. Because of this, the costs for remodels and maintenance have also increased.
Since the beginning of 2019, homeowners have steadily been spending less on these expenditures. Furthermore, construction permits to build single-family homes are down more than 8% compared to last year’s figures. Both of these factors combined with a five-year boom are huge signals that the housing market is destined to slow down soon!
Why You’ll Want to Sell Before it is Too Late!
Now that you know that the housing market is heading for a period of cooling, there’s no better time to sell than right now, when it is still peaking! The average value of homes in the U.S. are higher than they’ve been in more than a decade. This is fantastic news for the economy and homeowners alike, but this simply cannot last forever. Choosing to wait even just a few years can cause you to lose out on thousands of dollars!
One of the biggest ramifications of deciding to wait is a decreased home value. The biggest benefit of the recent surge in the housing market has been a healthy growth in the value of homes. Admittedly, some of this increase is inflated. Because of that, homes will inevitably return to their actual value in time as the effects of inflation wear off.
To put things into context, selling your house today can net you some serious financial gain. Let’s say your house is normally worth $400,000. In today’s healthy market, your house might be worth closer to $450,000! That’s a whole year’s salary for many people, all just for opting to sell a house when the market is high.
Another issue with waiting to sell is buyer fatigue. When the real estate market is high, sellers tend to have the advantage, having the flexibility to choose between multiple offers. On the other hand, a low real estate market will result in buyers having more power, often being the only person making an offer on a house. Since the market is currently at a high, this creates a scenario where several interested home buyers are consistently facing rejection as their offers aren’t accepted.
The process behind looking for a desirable home and actually placing offers can be quite exhausting, both emotionally and physically, and time-consuming. When buyers consistently go through the offer process only to get rejected, they can develop something known as buyer fatigue. Much like it sounds, buyer fatigue is what a buyer feels when their efforts to purchase a home continue to go unrewarded. Choosing to wait and sell your house just allows buyer fatigue to grow, making it tougher to find a suitable buyer.
Lack of Interest
You should also understand the distinct lack of interest in the housing market. Or rather, the next generation’s lack of interest in the housing market. People born during the Baby Boomer and Generation X periods definitely saw value in purchasing a home. The next generation, Millennials, are now reaching the age when previous generations would typically look to buy a house.
This is particularly problematic, as it may indicate a sign of something bigger to come. People from older generations like Baby Boomers and Generation X typically already own a home and aren’t actively looking to purchase or sell. This puts the focus on younger generations, namely Millennials, to start buying houses. But Millennials seem to have very little interest in purchasing a house. While the number of Millennials purchasing a home has risen in previous years, their habits indicate they are far less likely (or capable) of doing so as a whole.
When you think about some of the biggest differences Millennials are facing today, there’s no surprise they aren’t looking to buy a home! The average price of homes has increased, but most Millennials are also riddled with student loan debt. These two factors make purchasing a home prohibitively expensive, which certainly explains why Millennials are less likely to buy a home! This means waiting to sell just lowers your chances of receiving a good offer!
Selling Your House Fast in Indianapolis
The housing market has been on an impressive incline the last few years, but there’s no question it is starting to slow down. With the housing market at an impressive high, the time to sell is right now! The value of your house is likely higher than it will be for several years to come, meaning you need to sell now if you want to get the most for your house!
If you choose to delay selling your house, your home will very likely decrease in value and it will be much tougher to sell your house due to buyer fatigue and a lack of interest! The process of selling your house can be quite stressful, but we make it simple and fast at Ben Buys Indy Houses! If you want to sell your house fast, get in touch with Ben Buys Indy Houses to receive an ultra-competitive offer today!