Experts believe that 2019 will be the best time to sell your home. The Canadian housing market has been on a steady rise over the past two decades but the prices are expected to stagnate over the coming years. Rising interest rates and tighter rules that come into effect this year are promising to cause the market to correct.
According to the Canadian Real Estate Association, the charts for Canadian home prices will resemble a gently landing plane. The prices are likely to rebound slightly by 2.1% in 2019 before starting on a long and slow trend downwards. If you wish to sell your home, you’ll want to sell it before prices go much farther down. Here are four other reasons why you should sell your home in 2019.
1. Interest Rates are Still Relatively Low
Interest rates are on their way up. The current rates are higher than they have been since February 2011 but they are still much lower than the historic high in 1981. The rates are expected to rise therefore it would be wise to sell while the cost of borrowing money is less and more people can afford to pay higher prices for homes.
2. Seller’s Market
A high number of buyers are currently entering the housing market. Many of these new buyers are millennials who are looking to buy their first homes. A study by Harris Poll showed that about 20% of adults between the ages of 18 and 34 would like to buy their own home in the next 12 months or so. Millennials make up about 36% of home buyers so you can expect their actions to have a big effect on the market.
Rising interest rates will limit how many new buyers enter the market. Most of the new buyers are cash-light therefore they will be looking for homes on the affordable end of the spectrum. Sellers who have homes in the pricey range of the market should expect even less interest in their homes than ever before. You can expect buyers to remain active but the market will be much cooler than it was in 2017.
3. Sell This Year Rather Than Next
If you really want to sell your house then you should sell it in 2019 rather than 2020. According Zillow, which is a firm that specializes in analyzing real estate data, half of the economists and industry experts in real estate expect that the next major housing recession will happen in 2020. 14% think that the recession will come in 2021 and 24% believe that it will happen in 2019.
The general consensus is that a recession is coming. This means that prices are going to be heading south for the next couple of years and you would rather sell your home now before you are forced to sell for less later. The experts don’t believe that there is anything in the near future which would cause housing prices to spike.
4. Homes Currently Have High Equity
People who bought during the 2008 crash enjoyed very low interest rates. The prices were still in recovery mode until 2015 so if you bought a home during that period then your home’s equity has risen with just about every mortgage payment made. With a higher equity, you will be able to make more from the sale of your home.