If you’ve been following the news, a lot is happening within our economy both nationally and locally. In fact, in a Presidential election year with an incumbent up for reelection, the economy typically soars. Nationally, (according to Bloomberg) existing home sales are at the highest the country has seen since early 2018. The highlight of the article reads:
“Contract closings rose 3.6% from the prior month to a 5.54 million annual rate, according to National Association of Realtors data released Wednesday that exceeded all but one estimate in Bloomberg’s survey. The median sales price climbed 7.8% from a year earlier, the most since January 2016, to $274,500 as inventories declined for a seventh-straight month.”
Along the same lines, I predict our local Utah County, Heber City and Midway real estate markets will hit a pivotal inflection point in 2020 because, in many areas, home prices are at or above the 2007 bubble levels. You cannot expect the “rebound” effect to keep driving your home’s value up.The Federal Reserve is confident that the US economy has passed its low point and they have recently (in vague and jumbled language, of course) sent strong signals that the low rates consumers and businesses have grown accustomed to for the past 10 years, will begin to move up in order to curb the price inflation that we are all experiencing. We saw this last year as rates rose several times until the 4th quarter of the year when the Fed realized that they were raising rates too quickly. Raising rates could cause market shifts away from long-term bonds, which in turn increases rates in the mortgage markets.
What does this mean to you as a buyer or a seller?
For buyers, higher interest rates make the purchase of your home more expensive. For example, every 0.25% rate increase, the payment on a $200,000 mortgage will increase your monthly payment approximately $30 dollars. This may not seem like much, but that can take $360 - $720 dollars per year directly out of your pocket.
For sellers, rate increases directly impact the number of potential buyers who can qualify for your home – which, in turn may cause slightly longer marketing times and the need to offer buyer incentives such as paying all of their closing costs in order to sell your home.
As your Realtor, based on what I’m seeing in our market, 2020 may be the peak year in the short term to sell your home at the highest price. I speak with homeowners almost every day who are itching to sell because they have regained the losses they experienced during the economic recession.I see more people getting mortgages now that Fannie and Freddie back 3% down payments – talk to Matt Stout at Consumer’s Financial or Kellie Shepherd at First Colony Mortgage to get more details on all financing programs.I am sure you know people who are better employed, making more money, and whose businesses are hiring.
All these forces have come together, and we have seen “for sale” signs popping up all over our neighborhoods. This of course, if you’re thinking about selling your home in 2020, means there’s a lot of competition.
So, if you’d like to know what your home would sell for, fill out the information provided at the link below for a complimentary market analysis.Click here to find out what your home is worth now.Of course there’s more to pricing your home than mirroring your neighbors' final sales price. That’s where my expertise comes in – I know EXACTLY what homebuyers in your neighborhood are searching for.If you are, in fact, thinking about selling your home and want to know how it works, how long it takes, and the price you’ll get, call me at (801) 885-2558 or email me at brandonrwood19@gmail.com.
No pressure or obligation to sell, of course. It’s only a discovery phone call. Keep in mind, that it is in your best interest to act now - before everyone lists their homes in the spring and kids head back to school at the end of summer. This way you get ahead of the market and put more money in your pocket.
Feel free to call or email me anytime with your real estate or development questions.