2018 is proving to be an exciting time for sellers! We have truly entered the first major sellers market in almost a decade.
This sellers market is slightly different than the last one that happened though. The primary reason for this market is due to a low number of inventory available. There is approximately a 3.4 month supply of inventory available. In a neutral market, this will hover around 6-7 and in a buyers’ market you’ll see that number go above 7.
Low interest rates are still hovering around 4% and have led to a massive increase in home prices over the last 5 years. According to the Washington Post, home prices have risen 40% in the last 5 years. Don’t expect interest rates to remain this low forever. Expect them to head back to around 5% by the end of the year.
Another driving factor has been the Millennial generation. Millennials still remember the last crash of 2008 and are still slightly hesitant on making the major investment. That, along with the historical high amount of student debt, has kept them on the sidelines. However, don’t expect this to last forever. According to Realtor.com, Millennials are expected to make up over 40% of the home buyers taking out a mortgage in 2018.
While we don’t have a Magic 8-Ball to predict when the market will begin to correct itself and start trending down, we do believe that we won’t see the highs we’re seeing for much longer. Will that be 6 months to 3 or more years, no one can say for sure. What we do know is that we’re in one of the hottest markets in history and if you’re looking to sell, then you may not see another time like this for many years.
So what are you waiting for? Give us a call today at 931.250.3756 or email us at firstname.lastname@example.org and let’s discuss how we can help achieve your goals!