What It Means for People Who Want to Sell Their Homes
If you are a homeowner who wants to sell, what is the impact of the current market situation?
It is a seller’s market because the inventory of U.S. homes currently for sale is at the lowest point it has been in years. At the close of 2018, only 1.55 million homes were on the market. The inventory has trended downward for the past five years, reaching a low of 1.47 million homes for sale in December 2017.
So even though the number of people in a position to buy a home is at historically low levels, it is still a good time to sell a house.
Most homeowners opt to use a realtor to help them sell their properties. The traditional route to a completed sale is listing the house on multiple platforms, hosting open houses, letting prospective buyers tour the house, receiving offers, and negotiating and signing contracts.
Some homeowners choose an alternative route to a home sale. Instead of the above realtor-aided sale process, these homeowners sell their properties directly to investors. Home buying companies such as Houston Capital Home Buyers are investors that buy homes as-is. Offers are made quickly, often accepted quickly, and the deals go to closing with ease and speed. Traditional hoops such as inspections and repairs are bypassed.
What It Means for Investors Who Buy Properties to Rent
This is a good time for home buyers who purchase properties as rentals. Because home ownership is out of reach for so many people, there is a demand for rental properties.
The average price of rental properties, of course, varies according to region and city. It’s not a surprise that the highest rental rates are in California, Virginia (close to Washington, D.C.), and Hawaii.
The lowest U.S. rental rates are found in Roane County, Tenn., Peoria County, Ill., McMinn County, Tenn., Green County, Ohio., and Rhea County near Dayton, Ohio, finds BiggerPockets, an online community of real estate investors.
Summing It Up
Aaron Terrazas, a Zillow senior economist, predicts a shift in the 2019 housing market compared to where it has been over the last few years. While he sees continually rising mortgage rates and an ongoing shortage of affordable housing, at the same time he predicts a settling of the market. It is cooling, he says, in a November 2018 article in HousingWire. A stabilizing and balancing will happen between all sectors of the market (buyers, sellers, and renters) and those who can realize the American dream will have more time to make careful choices about properties that suit them best.