2018 is a great year to profit as a seller, will you next year? There are several reason why 2018 is a good year to sell, below are 4 good reasons to consider. It has been almost 10 years since our 2009 great recession. “We’ve seen two or three years of what could be considered unsustainable levels of price appreciation, as well as an inventory shortage that resulted in a record low number of homes for sale across the country,” says Javier Vivas, director of economic research for realtor.com (Amaya, 2018). Some believe the sellers window of opportunity is narrowing.
Once again, low inventory creating competition in the market. We’ve had record low levels of inventory year on year. Buyers are steadily becoming frustrated over the low inventory. The low inventory is pressing buyers to shop out of moving season to reduce the competition. Prices still steadily increasing, yet not expected to sustain.
Competition is allowing sellers to receive asking and above asking price. How much longer might this last? As home builders begin to meet the pressing needs for the housing market many will choose new builds over a resell. We are currently at a 4% year over year decline in inventory (Amaya, 2018). Which is also expected to peak by the end of the 4th quarter, and reach an all time high since 2015 (Amaya, 2018).
Interest rates still at historical lows. “The Mortgage Bankers Association predicts 30-year fixed-rate mortgages will rise to 4.6 percent this year, and it expects rates to rise to 5 percent in 2019 and 5.3 percent in 2020” (Thorsby, 2018). Interest rate increase can reduce buyer qualification and the notorious bidding wars. Interest rates are expected to close closer to 5% by end of 2018. Buyers are grappling to take advantage of the low rates and sellers can do the same on their next purchase if done in time.
Consumer confidence is at an all time high. Unemployment rates lowest since 1960. Millennials are beginning to commit to buying over renting as they begin moving into their 30s.
So is 2018 the right year for you to sell? Who can say? There are many positive reasons to sell. With several years of low inventory, competitive pricing, bidding wars and historical interest rates, no one knows how long the trend can/will last. If you are considering selling your home, maybe 2018 will be in your best interest. And if rates rise, inventory and builders supply increase, perhaps sooner is better than later. Is this the last year to make significant profits as a seller. Who’s to say.
Thorsby, D. (2018, January 12). Why you should sell your home in 2018. Retrieved
February 23, 2018, from https://realestate.usnews.com/real-
Amaya, H. (2018, January 10). 5 reasons it’ll pay to sell your home early in 2018.
Retrieved February 23, 2018, from