There’s no doubt that today’s housing market is changing, and everything we see right now indicates it is time to sell. Selling now is likely to drive the greatest return on your largest investment, and here are a few of the reasons behind that.
Home values have been appreciating for several years now, as evidenced by the hot market we’ve seen in the Kansas City area recently. The strong, steady pace of local home values has caused the average annual appreciation rate since 2012 to nearly double the average rate from the more normal, pre-bubble market of the 1990s.
Appreciation, however, is projected to shift back toward normal in the near future. This means home prices will likely keep climbing over the next few years, but they are not projected to continue to increase at the accelerated rate we’ve experience over the last couple of years. So, what does that mean for homeowners?
According to 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%). Looking at the projections as they stand today, 2019 is slated to stand out as the best year for appreciation over the next few years. With average home prices still on the rise, the pace at which they are predicted to continue increasing will likely soften by 2020.
Keep in mind that market trends are not the only factor that affects your home’s ability to appreciate in value; performing regular maintenance and updates is an essential part of getting the best return on your investment. An up-to-date, move-in ready home will sell much faster and for much more money than even an average house in the same neighborhood. Most buyers in our current market are not looking for a project, and if they are, then they want it for a steal. If you have the ability to invest a little money into getting your home ready for market, you have a great chance of getting that back in your sales price.
There’s still time to take advantage of the current strength of home prices by selling your house now, before the real slow-down occurs in the late fall and winter. 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.
Contact us today for a complimentary no-obligation market analysis and to find out what your home is worth. It really may surprise you!
REALTOR, CRS
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The Conderman Group
Keller Williams Key Partners, LLC
4200 Somerset, Suite 101
Prairie Village, KS 66208
info@condermangroup.com
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