How To Protect Your Assets During A Real Estate Market Shift
The mortgage crisis and ensuing losses about a decade ago certainly left behind a bitter taste amongst those impacted. It has also helped develop the importance of caution regarding American consumers. When so many were impacted by subprime mortgage deals that they could not afford, those who retained their homes must exercise intellectual caution and understand the market. Just this week, financial advisors have presented a new, emerging concern is the value of the home itself, as homes on the market appear face stagnating on the market in another housing dip. Read on to learn more about how to protect yourself.
A Crisis on the Horizon
Financial news monolith Bloomberg has been amongst the first to report on an impending real estate crisis for sellers. If you are looking to sell your home in the future, take heed as writers Sho Chandra and Prashant Gopal have noticed some disturbing trends. Chandra and Gopal warn, “The U.S. housing market — particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas — appears to be headed for the broadest slowdown in years.” This is particularly alarming because the hottest markets usually have the most demand and set the trends for other markets.
Buyers in these markets are waiting for selling price to drop, which leaves more homes on the market. With more homes for sale, that means there are more options, and makes it more difficult for sellers. Those currently selling their homes “are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and there’s only so far they can stretch.” This means that affordability is becoming a concern for homeowners, which prompts them to list their home.
When to Sell
Sellers and potential sellers must weigh a multitude of questions. One is, “Does this impact me?” “When should I sell?” “What is the value of our home?”
If this trend continues, then those looking to sell their homes within the next twelve months should act sooner rather than later, as the problem will be compounded with even more homes on the market. Therefore, it makes sense to begin researching and finding the value of your home before the conditions become exasperated. In terms of selling, market trends will dictate the fluctuation in the value of your home.
Furthermore, the statistics suggest selling sooner rather than later. According to the article, “Existing-home sales dropped in June for a third straight month. Purchases of new homes are at their slowest pace in eight months.” In other words, the current trend in the market is that it is more difficult to sell one’s home and new constructions aren’t selling well, either. The same conditions that are prompting homeowners to sell are making buyers wary to buy. However, instead of seeing the prices of the new homes plummet, they are currently remaining at a relatively stable value.
Experts say that “the housing sector has strong support [from] steady economic growth, which indicates a stabilizing trend for home prices rather than anything close to the experience of the crisis, when property values plunged.” While selling with less profit is not desirable, it is preferable to selling at a loss, and no one can predict the homes will continue to remain stable.
The Importance of Home Value Estimations
What can you do to ensure the best outcome? How do you begin to make a decision? How do I find a home value estimation?
Find the home’s value. That sounds simple, but entails much more than a cursory Google. First, you will have to see how much your home is currently worth and look at this now rather than a year from now. This way you will be able to make an educated choice about when to list. Here’s where we help and provide free home valuations. We are inviting homeowners to get a free home valuation in lieu of this current situation and to stay ahead of the game by proactively responding to market dips and turns.
By using the latest sales data, we provide a simple way to get a quick valuation on what your home could be worth in today’s market. Have you been thinking of selling? Why not take the first easy step! Contact us today!