If you're thinking about selling your house, now is a great time to make your move and here's why.
There's no doubt that today's housing market is changing, and everything we see right now indicates it is time to sell. Here's a look at why selling now is likely to drive the greatest return on your largest investment.
Home values have been appreciating for several years now, growing at a strong, steady, and impressive pace. In fact, the average annual appreciation rate since 2012 has nearly doubled the average rate from the more normal market of the 1990s (think: pre-bubble).
Appreciation, however, is projected to shift back toward normal, meaning home prices will likely keep climbing over the next few years, but they are not projected to continue to increase at such a high rate.
Here's What That Means for Homeowners:
As noted in the latest Home Price Expectation Survey (HPES) powered by Pulsenomics, experts forecast an average annual appreciation rate closer to 3.2% over the next five years, which is more in line with a historically normal market (3.6%). The good news is, there's still time to take advantage of the current strength of home prices by selling your house now.
If you're thinking about selling your house, now is a great time to make your move. Don't get stuck waiting until projected home price appreciation rates potentially re-accelerate again in 2023. You'll likely earn the greatest return on your investment by selling now before the prices start to normalize next year.
First Published by Keeping Current Matters August 11, 2019
The Charlottesville Area Association of REALTORS® 2nd Quarter Home Sales Report, a custom report prepared by Virginia REALTORS®, is available. In addition to providing housing metrics, this report provides you with an in-depth look into local, state, and national economic conditions including unemployment rate comparisons, job change by industry, monthly permits for new residential construction, and more! It's a great way to understand the real estate market in a holistic way.
• Job growth has slowed in the Charlottesville area; however, the region's Educational Services sector continues to boom. An extremely low unemployment rate suggests that local businesses are having a hard time finding qualified workers in the region.
• New residential construction activity remains steady with little evidence of acceleration to meet pent-up demand.
• Interest rates are even lower now than they were at the beginning of the year, and there is no indication of significant increases in the months to come.
Housing Market Conditions
• Sales activity continues to be down slightly from last year in the overall CAAR region, and remained essentially flat in Albemarle County.
• After declining at the start of the year, the median sales price trended up in the 2nd quarter, rising $13,650 compared to a year ago. The fastest price growth is occurring in the City of Charlottesville, with prices up nearly $27,000 from this time last year.
• Homes continue to stay on the market longer on average. The average days on market in the 2nd quarter rose 3 days from last year to 54 days.
View the entire detailed CAAR 2019 2nd Quarter Home Sales Report here.
First publised by The Charlottesville Area Association of REALTORS®