Thinking of Selling? Do it now before the market slows – or implodes

Real estate experts have begun to make noise about the next recession or real estate market “correction”. Some experts have begun to predict that the next market correction may occur as early as in 2019 – just a couple of months away!

As most homeowners know, real estate is a great investment and is often the largest investment a person will make. Real estate values are currently on the rise, especially in Massachusetts, but as we all remember from the recession of 2008, real estate values are tied to the economy generally and market corrections or large-scale recessions can impact a homeowner’s equity and value in a home.

With a potential market correction coming as early as in 2019 – as is currently being predicted by experts and real estate pros, as described on Zillow here – homeowners who are considering selling in the next several years should act now while the market is still a “sellers market” and while homebuyers are still able to pay top-dollar for homes. Missing this opportunity and trying to sell in a market downturn (or in the several years of a recovery period after such an event) could mean that sellers may receive less for their sale, potentially leaving some underwater.

We can learn about navigating a real estate downturn or correction based on what we learned from the last recession in 2008:

• Sellers found themselves underwater in mortgages – owing more to the bank than their property was worth on the open market;
• Underwater sellers who needed to sell were required to bring money to the table to close on a sale; and
• Buyers found themselves with lots of options as supply increased, driving down prices and making a “buyers market” where buyers had their choice of homes and could make demands on improvements or seller concessions.
  

If you are a homeowner and are thinking of selling in the next couple of years, selling now will allow you to take advantage of the current “sellers’ market” and avoid a potential downturn trapping you in your home for the next several years.