You may be wondering if now is a good time to sell your house, and the answer is: maybe.
Heading into 2022, housing market experts are predicting a year of high demand and rising home prices. 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 for sale soon to take advantage of the current demand, 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 home for the foreseeable future.
Here are top reasons you should sell your home in 2021, along with three reasons you may benefit from waiting:
- Sell in 2022: Interest rates are expected to remain low.
- Sell in 2022: You have a starter home.
- Sell in 2022: You need to move.
- Wait to sell: You just refinanced.
- Wait to sell: You’re worried about affording your next purchase.
- Wait to sell: You’re worried about finding your next home.
Sell in 2021: Interest Rates Are Expected to Remain Low
Even before the first known coronavirus cases in the U.S., economists and real estate professionals predicted mortgage interest rates would remain, on average, below 4% for the majority of 2020. The impact of the pandemic has lowered interest rates even further and drawn out that prediction into 2021 as well.
The average interest rate as of Dec. 10 was a record low of 2.71% for a 30-year, fixed-rate mortgage, according to Freddie Mac. This isn’t the first time since the start of the pandemic that mortgage rates have set a record – 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 shopping buyers. Expect rising home prices to balance out low rates, at least in part. “Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment,” Sam Khater, chief economist for Freddie Mac, said in a press release discussing the drop in mortgage rates.
Interest rates are expected to rise as 2021 wears on – realtor.com predicts mortgage interest rates will reach 3.4% by the end of the year, they are already creeping up as of today – 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.
Danielle Hale, chief economist for realtor.com, explains that the lack of available homes on the market creates opportunities for sellers to benefit from eager buyers, possible multiple purchase offers and rising prices.
“Anyone who’s looking to sell, even if they get slightly below asking, is going to get a healthy sale price,” Hale says.
If you are a first time seller, there are a few things you need to know. You may love your home, but try to get unemotional about your home. Once you decide to sell your home, start thinking of yourself as a businessperson and salesperson rather than just the homeowner. In fact, forget altogether that you’re the homeowner. By looking at the transaction from a purely financial perspective, you’ll distance yourself from the emotional aspects of selling the property.
Also, try to remember how you felt when you were shopping for that home. Most buyers will also be in an emotional state. If you can remember that you are selling a piece of property as well as an image and a lifestyle, you’ll be more likely to put in the extra effort of staging and doing some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price; they’ll also help you create emotional distance because your home will look less familiar.
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. This is the NUMBER one thing I here today, if I was going to sell, there is nothing to buy. Thankfully there are programs we can offer you that allow you to Buy a home BEFORE you sell. This is huge if you are worried that you won’t find a home to buy. There is a cost associated with the luxury of buying before you sell. The lender will approve you based on your home’s current value and then give you up to 5 months to find and close on your home new home. Once you move out of your current home, we can get your home ready to sell for top dollar. No headaches of showing the home while you are living there. This is truly the safest way to sell your home. Once your home sells you will pay back the lender for the loan you used to secure the purchase of you new home, plus a fee for the transaction. If feeling secure about moving is important, this is a great option to consider.
If you are still not sure if you should sell your home now or wait, call, text or email me and I will walk you through the pros and cons of selling now or waiting.
Once you decide if now is the right time for you to sell your home….then you are ready to start the process of selling…https://homebytristen.com/ultimate-guide-to-selling-your-home-san-diego/