What Are the Biggest Challenges Sellers Will Face in 2020?
2019 was a stellar year for sellers who keep the advantage going into 2020. However, according to a HomeLight Top Agent Insights Survey from Q4, over 50% reported that there is a new trend arising, and we’re veering towards a more neutral market. There is an uptick for buyers for high-end and luxury properties while the seller’s market remains strong for those at the entry-level of the spectrum.
To make selling your property as profitable and as stress free as possible, let’s focus on three of the biggest challenges a seller may face.
This has been one of the biggest issues to the market, and the trend looks like it will continue well into 2020. With the demand for housing in growing urban markets, investors who bought foreclosed homes found that they made more on rentals than they would by selling the properties. Thus, the shortage began for first-time buyers. Further to this, boomers have been reluctant to sell opting to skip downsizing and stay put. To add to the mix, there is an affordability crisis with soaring prices in certain areas making some experts worry that 2020 will see even less inventory. In contrast, many agents from the survey predict that the inventory will stay the same or increase in their local markets bringing some relief to the inventory problem.
Beware the temptation to go with the highest market price. Keep a finger on the pulse of the market conditions in your area. Prices are predicted to flatten so you may need to make some adjustments to your pricing strategy. The risks of overpricing include shutting out potential buyers, longer listing times that negatively affect your property, and price reductions that can get low-ball offers and months of costs. The more probable outcome is that you end up helping your neighbor sell their home while yours remains with a For Sale sign in front. Stand out from the houses in your area and work with your real estate agent to list your home at the right price.
Talk of recession in 2019 was headline-making news. Fortunately, this did not come to pass. In a recent U.S. News report, 53% of forecasters surveyed do not expect a recession in 2020 but predict one by mid-2021. While many may have fears associated with the last housing downturn, according to Realtor.com, if one should hit prices are not likely to dip 50% as they did in 2007. The overall opinion is that the housing market will remain at healthy levels for both buyers and sellers through this year.
For those who are ready to sell, the forecast for 2020 is good and we are still in a sellers’ market. With the current drop in mortgage rates, a lower unemployment rate, and salary increases in some metropolitan areas, the boost in buyer demand for entry to mid-level homes is on the rise. 2020 seems like the right environment to sell your home and transition into the next home of your dreams.