Since 2020, the housing market has seen increased prices due to high demand and a low supply of homes. This trend has been fueled by low mortgages and low-interest rates, and better than expected job growth.
Most experts ask how long the housing market will keep increasing and when this trend will begin to cool off?
15 years ago, the housing market had low-interest rates and low mortgages; nobody was able to foresee that around 9 million homeowners would end up losing their homes in a period of 8 years.
According to Freddie Mac's forecast, mortgage rates will close at 3.40% by year's end, after the Fed reduces its economic stimulus. Other analysts have different forecasts but share a common analysis that mortgage rates will increase in the following months.
According to the National Realtors Association, home sales for August dropped by 2% from July and were 1.5% lower than August 2020. This cooling-off is because some buyers are holding off to get better prices and also due to economic uncertainty.
Another indicator shows that the total number of days a house was on the market before being sold increased by 20%. Analysts also agree that although a recession or housing bubble burst as seen in 2007 is unlikely, a price dip in home value is possible.
Mitigating your risk will depend on how much exposure you have for the houses and properties you own or if your home is high-end or in the low-end bracket.
Nobody can deny that what goes up has to come down, and it seems that high home prices have peaked and are now beginning to cool down. Looking to sell your home now might be a good decision, taking advantage of the high value before prices drop significantly.
The bottom line is that selling your house now or in the near future could be a great option for homeowners who don't want to lose the home value or equity that high home prices from last year and the first semester of this year have created.
Take companies that buy houses for cash; for instance, they are ready to buy your house for cash as long as you're willing to sell. In addition, they will offer a fair price that's completely free from commission charges and other costs. You can even bag a lucrative deal by selling your house for cash because these companies will buy your house as-is.
Right now, you can get a good price and get cash to use for other investments or buy other assets. Diversification is the key, as well as reading the housing market signs to get the most value for selling your house.