The title may be a bit misleading, as this isn’t a doom and gloom blog about the sad state of real estate in the coming year. While there may be some challenges to selling your home in 2020, they’re not insurmountable. So, if this is the year you’ve decided the sell, read on to discover your best strategy.
What are the challenges?
We are defining seller challenges as those indicated by more than 500 top real estate agents across the country in a fourth-quarter survey conducted by HomeLight, a real estate referral company. Agents indicated that a shift from being a seller’s market may pose a challenge, in addition to inventory levels, and overpricing, so let’s take a look.
Market shift
43.5 percent of agents predict that the market will gradually shift to a more neutral position, away from being solely a seller’s market. However, another 41 percent of agents predict that 2020 will remain a seller’s market. These forecasts align similarly with how agents felt available inventory would change in their markets. 45 percent of agents predicted housing inventory levels would rise in their markets, while 44.4 percent believe that those levels will remain level. But, what does all of this mean for you?
If you’re trying to decide between selling this year or in a couple of years’ time, 2020 may be your best choice. Most sellers, given the luxury of choice and time, would choose to sell when the market is predictable, rather than putting it off and into the unknown. With just under half of agents predicting a gradual shift in the market, it’s safe to say that 2020 is a great year to sell. 2021, however, is a different story.
When asked when they thought the United States would hit its next recession, only 12 percent of agents replied that they believed it would happen before the end of 2020. However, 36 percent of agents responded that they believe the U.S. will hit its next recession before the end of 2021.
Pricing poses the greatest challenge
The biggest challenge, according to agents, in 2019 was the tendency for sellers to overprice their homes. Overpricing will again pose the greatest challenge this year, forcing sellers to take a more thoughtful approach to pricing their homes.
With 54 percent of agents responding that they expect home prices to remain level, overpricing will likely stand out like a sore thumb and cause a house to sit on the market. Sellers should embrace the predictability of the market and let it guide their approach to pricing if they want to sell their properties quickly and smoothly.
The best way to tackle hurdles in the real estate market this year is to keep calm and play it safe. For the most part, it’s business as usual, and going along with what your local market is dictating will pave the way for a smooth home sale process.
