Whenever we want to list our homes, we are generally accustomed to waiting for the “right” season, whether it’s the start of spring or end of summer before school starts and holidays come. This real estate trope has held for years, and this year hasn’t shaped up to be any different. However, it appears the pandemic has almost eliminated these seasons, with homes being in demand no matter when they hit the market. Even with the trend of quick-selling homes, you may still be asking yourself, is 2021 is the right year to sell my home?
While 2020 had been a unique year for the housing market, the low inventory, low mortgage rates, high demand for homes, and the entrance of millennials to the market has driven home prices higher. This year, the Federal Housing Finance Agency expects the housing market to be a seller’s market, as few people will sell their homes when many people can access finances to buy new homes. Homeowners know that a home that fetches a high price comes with higher equity.
Due to the coronavirus, people are looking for spacious multigenerational and suburban homes where they can set up offices and work at home, or looking for homes where they can stay with their elderly parents and kids. A combination of these factors makes 2021 a prime year for home sellers. While we expect these conditions to last through the year, the market dynamics are likely to revert as soon as the pandemic wanes away.
Experts in housing markets have predicted a high demand and value of houses in 2021. The supply for homes in the market is low as compared to the demand. You can sell your house now and benefit from high prices.
Here are some of the reasons you should sell your house in 2021.
Low Mortgage Interest Rates
The COVID-19 pandemic reduced the mortgage interest rates for homes to a record minimum. With the low rates, home prices rise to balance off the low rates. The demand for homes is higher in the market compared to the supply, equaling the advantage of low rates.
The Necessity to Move
Many reasons push you to move from your current home. Families are looking for bigger homes in suburban or rural areas where they can get spacious rooms at a lower cost. But there’s just not much incentive for boomers to sell their homes. Baby boomers have been reluctant in selling their family homes than previous generations, thus exacerbating the shortage of houses for sale. The shortage translates to a higher price for every home listed as buyers struggle to grapple with the few homes in the market.
Difficulties in Obtaining Another House
While the year looks promising for any homeowner who wants to sell their house, there are some reasons you might not consider selling your house. First, the value of the house you desire to own may be a little higher than your current home, or may sell for higher than its true value. This means you won’t have sufficient equity to act as deposit for your new home.
Second, because of the current market conditions, it can take time before you find another home. Unless you already have an alternative place to live, or you’ve already found your ideal home and had an offer accepted, the process of selling and buying a home may become more of a stressful challenge.
Should I Rent or Sell?
Despite the high home prices in the market, you may have insufficient equity to deposit for a new home. If some other circumstances are forcing you to move out such as a job or family, it would be better to find a home to rent as you rent yours. Over time, the house will earn you enough equity after a while and that’s when you can sell the house and buy one that better fits your family.
Certainly, 2021 is a seller’s market. Millennials and Gen Z are looking for their first homes, buyers are taking advantage of the low interest rates, and people are looking for bigger and more spacious homes. So, if you are considering selling your home, this year might be the best year to do so. Contact Gateway Realty to navigate you through the process of selling your home.