What If I’m Not Buying or Selling a Home This Year?
You may be thinking, Stop sending me stuff about buying or selling a house, I’m not going anywhere anytime soon. We hear you, and according an article written by Dave Ramsey here’s what you should know for now:
1. Equity will likely continue to increase by 2–6% each year until 2020.
With most housing markets at low risk for a downturn, the 2018 Housing and Mortgage Market Review estimates home prices will continue to rise for the next couple of years, with annual increases of 2–6%. Who-hoo for sellers! If you sell your house before 2020, you’ll likely still make a great profit. Continue to monitor how much your home is worth to make sure your equity (what your home is worth minus how much you owe on it) is going up.
2. From what we can see, the real estate market is not going to crash.
With such fast-rising mortgage interest rates, some folks are wondering if the housing market could collapse again. Well, it’s impossible to know for sure, but a number of factors indicate a housing crash is not in the foreseeable future and the economy is still strong. Here are some indicators:
People are spending money.
There’s a low unemployment rate and new career opportunities.
All-cash real estate buyers (our kind of people!) are becoming more common.
Fewer buyers are using interest-only home loans (aka the worst loans possible) that allow you to pay just the interest each month and not the principal.
Millennials want to buy.
Taxes are lower.
3. Regardless of your neighborhood, buyers are interested.
Even though buyers in 2019 may be choosy, determined ones might be willing to consider neighborhoods that don’t have easy access to highways or aren’t in close proximity to a big city. If you think you live in an unpopular neighborhood or believe your home isn’t what buyers are looking for, think again. Now may be your perfect time to sell.
As seen on www.daveramsey.com