We are now halfway into 2021, experts predicted a year of high demand and rising home prices, and that’s exactly what happened. Are you on the fence? Should you sell your house now?
After an initial drop in housing market activity last spring coinciding with stay-at-home orders and closed businesses, homebuying and selling rebounded quickly. Buyers are still eager to move, but the lesser supply of homes on the market in many parts of the U.S. is contributing to rising home prices. As a result, it remains a seller’s market that benefits homeowners who are choosing to sell now!
If you’re on the fence about selling, you have a few choices: You can put your house up now to take advantage of the current demand or you can wait out the pandemic (however long that takes) for a more vivid picture of the future of the economy. Or, you can opt to stay in your current house for the foreseeable future. Here are reasons and explanations why you should sell now and why you may want to wait to sell your house. One thing to think about is this, we never know we are at the top of the market until we start to go down!
Sell in 2021: Interest Rates Are Expected to Remain Low
Mortgage interest rates have remained on average, below 4% and the pandemic has lowered interest rates even further into 2021.
Since the start of the pandemic, mortgage rates have dropped to historic lows – the first time was on March 5, when Freddie Mac reported the average rate was 3.29%, a 50-year low for mortgage interest rates.
While the low rates are promising for an affordable mortgage, there are not enough properties on the market compared to the number of buyers shopping! As you have seen, rising home prices balance out low rates, at least in part.
Realtor.com predicts mortgage interest rates will reach 3.4% by the end of the year – but they should still remain low compared to historical averages.
Sell in 2021: You Have a Starter Home
Especially if you live in a place where home prices are climbing fast and bidding wars are common, homes at entry-level prices – often purchased by first time homebuyers – are likely to see plenty of buyer activity through the rest of the year.
The price range that’s considered entry level depends on where you live – typically it’s considered the lower third of home sale prices for an area.
According to Realtor.com, the lack of available homes on the market creates opportunities for sellers to benefit from eager buyers, possible multiple purchase offers and rising prices.
Sell in 2020: You Need to Move
If you need to move fast for any reason, it’s still possible to sell your home and find a new one. The need to move isn’t always positive, though. If you lost your job, you may be worried about your ability to continue to pay your mortgage. If that’s the case, selling may be a valid option.
If you’re in a market seeing fast home sales, the lack of inventory can help your home sell. By predictions, a well-priced home, or one that establishes an asking price on par with its market value, will sell quickly while inventory remains low.
If you need to also buy quickly and don’t want your dream home to go to another buyer, Keller Williams offers the Homeward Program. Ask me about it!
Wait to Sell: You Just Refinanced
If you’re one of the many homeowners who have refinanced recently, you may decide that selling your home now is not the right time. Hopefully, your refinanced mortgage has helped ease financial woes by lowering your monthly payments. However, I’m always available to answer any questions about the timing of selling!
If you haven’t considered it, refinancing can be a great way to continue to protect one of your largest investmens. If you have questions, please talk to our trusted partner, Tom Tevis at Fairway Mortgage: https://www.applywithteamtevis.com/.
Wait to Sell: You’re Worried About Finding Your Next Home
The caveat of a strong seller’s market is that as a home seller, you may struggle to find a new home to buy. There are options though, with Keller Williams’ Homeward Program you can “Buy Before You Sell,” to win your new home before you sell your current house.
You also should expand your search to include new construction homes. If you have probably noticed, there’s a house building boom here in DFW!
If you are considering selling your house, I am happy to help you decide. I will give you sound advice to make a good financial decision to decide if you should sell your house now. As I always like to say I “positively impact your life as you move toward your dreams!” I am here for you!
Beth Brake REALTOR®
Positively impacting your life as you move toward your dreams.