Reasons to Sell Your Home
Now that the economy is beginning to recover and people are returning to work, many homeowners are wondering if they should sell their homes.
Of course, if you just refinanced or don’t think you can afford your next house, it may be best to wait. While you could receive substantial proceeds from the sale of your home, a low supply of fairly priced properties could also force you to pay more for your next house than you want to or are able to.
Still, if you’re in the market for a new home, now is the ideal time to sell. Read on to find out why 2021 is the year to list your current house and find the home of your dreams with one of our 518 real estate agents.
1. Low Mortgage Rates
Last year, mortgage rates dipped lower than they’ve been in nearly 40 years. At just 2.71%, December’s rate was historic, and rates will likely remain low for most of 2021. Subsequently, there’s been a huge surge in buyer demand, and some homeowners would have little to no difficulty selling their homes in such a market. In fact, many are receiving offers that are at or well above their asking price.
These rates are also good news for those who wish to upgrade their homes or take out a second mortgage to purchase their next property. Instead of paying too much for another mortgage and receiving little to no return on home improvement investments, they’ll both save and make money in the long run.
2. Higher Home Values
As mortgage rates go down, home values continue to rise.
In the U.S., prices have gone up 8.4% over the past year and many experts have issued a positive forecast for housing prices throughout 2021. Brisk sales will mark spring and summer, followed by a slowdown in the fall and winter. Luxury housing, which continued to perform well during the pandemic, will likely lead rising home values well into next year.
After 2021, experts predict values will decelerate to a more normal growth rate. Therefore, if you’re in the market to sell, you might not want to wait another year to list your property.
3. Poor Market for First-Timers
Of course, higher prices aren’t exactly ideal for first-time homebuyers. Instead of using equity to purchase a home, they must save money for a down payment to receive a lower mortgage rate. Meanwhile, those with a house to sell can afford to pay more for their next property because they’ve built equity.
Thus, current homeowners have the upper hand — and they haven’t hesitated to flex it. In October of last year, sales of previously owned houses jumped 4.3% from the previous month.
4. Limited Housing Inventory
Last October, the housing inventory reached an all-time low — a 2.3 month supply. Typically, the housing market equalizes at a four to five-month supply, so sellers certainly had the advantage. Fueled by buyer demand, their home values increased and buyers fought to pay even more.
Now, middle-class buyers are beginning to pump the brakes on home-buying, at least when it comes to low to mid-priced properties. However, if you’re trying to sell a higher-priced home, you probably won’t notice a dip in demand. Why? Moderate earners may not be able to afford luxury, but the wealthy will have no problem snatching up your high-value home.
5. More Options in the Future
In the coming months, more people will catch on and put their homes on the market, which will increase supply and cause home values to return to more reasonable levels. Therefore, if you have a property to sell, you’ll want to do so sooner rather than later, whereas if you’re worried about being able to afford your next home, you’ll want to wait to buy.
Selling Your Home
If you decide to sell your home in 2021, you must first figure out how much it’s worth. Often, sellers overprice their homes. But in this particular market, you might make the mistake of underpricing your property.
Consider the price of other houses in your neighborhood or city and hire an appraiser to price your home accordingly. Our Capital Region real estate agents can help determine the proper list price of your home too.
Do you want to sell your home more quickly an even higher listing price? Make a few renovations. Today’s buyers are looking for energy-efficient appliances, hardwood flooring, and insulated windows, all of which offer a significant return on investment.
The Choice Is Yours
If you’ve managed to build a fair amount of equity and want to relocate within the next few months, 2021 may be the best time to sell your home. In fact, it may be your final opportunity to make a profit and get a historically affordable mortgage.
However, the choice is ultimately yours. Speak with one of our real estate agents and your financial advisor to determine whether you should move or stay put for a while. After carefully weighing your options, you can make the right choice for you, your family, and your future.