Why is 2019 the best year to sell your Bay Area home? Today I’ll explain.
Simply put, the party may be over.
We all remember that the market crashed in 2008, and it hit the bottom in 2012. Since then, here in the Bay Area, the market has been going straight up, with homes doubling and sometimes tripling their values.
That said, we’ve never exceeded a seven-year run of appreciating values, and we’re now in the seventh year of this upswing.
Another critical factor in why this year is the prime year to sell is interest rates. At the end of 2018, rates were hovering right around 5%. We all thought that rates would have jumped up to about 5.25% at this point in 2019, but because of the instability of the stock market, the bond market has reacted positively. Currently, we’re actually down to 4.25% for most loans, which is where we were about 18 months ago. I believe that reason alone extended the current market to where it’s at today. In 2020, we do expect interest rates to reach the low fives.
The last thing to consider is supply and demand: As supply begins to rise, demand starts to drop. Sellers are noticing that home values are double what they were four years ago, and many have decided to capitalize on the market. As this happens, the market starts slowing down, meaning we aren’t in the same white-hot market we were in last year.
Today we’re averaging about two or three offers on each listed property, whereas a year ago, we were averaging seven to 10 offers per property. This shows us that the market is definitely shifting.
So, ultimately, your window of opportunity to sell is shrinking. If you have any questions about today’s market or selling your home, feel free to give me a call or send me an email. I’d love to help you.