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THE BIGGEST CHALLENGES CENTRAL FLORIDA SELLERS FACE IN 2020
2019 proved to, again, be a year for sellers, and 2020 is not looking to upset the balance too much. With home prices predicted to remain relatively stable, this year is a great year to part ways with your current property if you’ve been thinking of selling. Sellers will, however, face some challenges going into 2020, let’s take a look.
HomeLife, a real estate agent referral network, conducted a survey of more than 500 top real estate professionals to get insights about their local markets, in addition to their predictions for 2020. Across the board, agents responded that overpricing was the biggest challenge they faced in 2019 and expect it to be the same in 2020.
According to Florida Realtors® Real Estate Trends, Central Florida home sellers can expect to command a bit more in the market price of their home, as home sales continue to rise in the Sunshine State. The hearty real estate market continues to be fueled by steady economic growth in Florida, to the advantage of sellers.
You’ll need to take a thoughtful approach to pricing your home in 2020, and you’ll need to work closely with your agent to calculate a market-appropriate figure. While millennials are eager to enter into homeownership, especially while mortgage rates remain low, they will not overpay for a house. Pricing is everything.
Gradual market shift
Overall, 2020 is a predictable year to sell, with no major changes expected. In fact, 41 percent of agents predict that their markets will still favor sellers throughout the year. However, 43.5 percent of agents predict the market will neutralize, shifting towards a more balanced position between buyers and sellers. If you know you want to sell your house in the next two years, this year is more favorable than next.
A decline in listings contributes to low inventory levels in the Central Florida market, which is not expected to change much from the last two years. In 2019, Florida listings for single-family homes were down 11.4 percent and condo-townhouse listings were down 9.7 percent from the previous year. The decline in available inventory is fueled by rising construction costs, a lack of affordable land, and a shortage of available labor.
If you are a seller looking to downsize in 2020, you may be better off staying put until the market levels out a bit, as you’ll find yourself in stiff competition for smaller/starter home inventory. As in-migration continues to bring outsiders to the market, there is more competition for homes.
Bidding wars a thing of the past
If you were hoping to have a bidding war in response to listing your home on the market, your chances have decreased from previous years. That’s not to say that bidding wars aren’t happening in Central Florida, but 60 percent of agents across the country reported a decline in bidding wars in their markets.
While 2020 is a great year to sell, don’t try to sell your home if it needs significant repairs. More than eight percent of agents predict an increase in buyer demands on repair requests, so make sure you’ve got your house in order before you go-to list.
Of the challenges sellers face in 2020, none should be enough to dissuade you from listing your home this year. Just make sure you’ve got any necessary repairs completed and pay careful attention to pricing.
This article courtesy of Maddi Arcurio of HomeLight
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