2019 is wrapping up, and its been a busy year for Real Estate in central Indiana. Are you considering selling a home in 2020? If so, here are a few things to think about. The starter homes (houses under $200k) should continue to sell fast and see values increase. They just aren't building homes under $200k anymore, so I do not see this slowing down anytime soon. However, I think we will see home sales in the $250k+ range start to slow down a bit. There are so many new construction subdivisions going in that it's starting to get more competitive. I think we will see better builder incentives in 2020.
So what should you do if you're considering selling? If you're in a starter home and need more space I would suggest trying to hang on to that home and keep it as a rental if you have the financial ability to do so. Rental properties are great investments, and these homes continue to climb in value. Rental rates have climbed a lot in the last couple years. If you would like to discuss average rents for your home, and what it takes to rent your property please contact me for a free evaluation.
If you purchased your home several years ago after the financial crisis there is a good chance you are sitting on a lot of equity. This was the peak time of the housing recession and you probably purchased at a very good price. Its not uncommon to see homeowners sitting on $30k-$70k in equity who purchased homes in the years following 2009. In many cases, if you're looking to upgrade to a larger home you can roll that equity into a new home without changing your payment at all, or with a small payment increase, but end up with a much larger and nicer house.
If you're looking to downsize you can be in a tough position because smaller home prices have risen so much. It's not uncommon to see someone with a $250k home downsize into a $200k home that's only half the size, but the home price was only $50k less.
What is your home worth? Contact me for a free home evaluation and set of comps! No obligation, even if you do not plan on selling AT ALL!