A lot of homeowners are seriously considering selling their homes to take advantage of the hot housing market. In fact, in several in-demand states like Texas and California, many people see more than 10% increases in home prices. If you remain undecided whether to put your home in the market, here are the top five reasons to consider selling your home this 2021:
- Homes Are Selling Fast
One of the reasons people do not want to sell their homes is the lengthy and complicated process of closing a property sale. Sometimes, it may take months, maybe even years, to find a buyer. But in 2020 and 2021, this isn’t the case. Houses are selling just weeks or, in some instances, even days after putting them up in the market. If you want to sell your home quickly and fuss free, you can always find a real estate company like Four 19 Properties to help you get cash fast for your home.
2. Demand Is At An All-Time High
The surging demand for homes is fueling the booming home sale market. Because of the low mortgage interest rates due to the COVID-19 pandemic, many people suddenly find themselves financially able to acquire a new home. Even if you sell an old house, you can still find a buyer willing to pay a premium, mainly if your property is in cities or suburbs. Take the case of North Richland Hills in Texas as an example. It’s among the fastest-growing cities in the state and listed as one of America’s best places to live. Home market prices in the city are expected to rise, and many home sellers want to cash in.
But even if your old home is on the outskirts, don’t be afraid to try selling it. Just make sure to follow the best practices in selling an old house, such as enhancing curb appeal or finding a real estate company to help you.
3. Home Prices Are Soaring
Due to the uncertainties caused by the COVID-19 pandemic, the housing market was slow during the first half of 2020. However, after the sharp decline in mortgage rates, the government pandemic assistance, and the rollout of the vaccines—many found themselves optimistic about the economy and having the savings to acquire a house. According to a Morgan Stanley report, the months of May and June are a great time to sell your home. However, if you missed that opportunity, don’t feel bad. The housing market is still hot, so you can still get an excellent price for your property even if you sell during the last quarter of 2021.
4. Mortgage Rates Are Starting To Climb
As mentioned earlier, during the last part of 2020, interest rates for home loans have fallen to record lows. This drop fueled the home-buying frenzy in late 2020 and the first half of 2021.
However, because of the uptick in demand and soaring home prices, the mortgage interest rates are climbing. So if you desire to take advantage of the current demand for homes, you must decide now while many homebuyers still consider the rates affordable. As the US economy begins to grow and recover, rates may again rise to the pre-pandemic levels, and the demand for homes may also start to decline.
5. Supply Of New Homes Remains Low
During the pandemic, the lockdowns and stay-at-home directives caused the production in many industries to slow down or completely stop. The construction industry is one of the business sectors affected by COVID-19-driven policies. However, the global economy is starting to open, and the supply of raw materials is beginning to normalize. Thus, newly constructed homes may start to flood the market in the coming months. Before that happens, you must consider selling your house while there is still a shortage and high demand for homes. If you stay indecisive, you may not be able to take advantage of the current premium prices.
6. Changes In Work Arrangement
One of the reasons people live in the suburbs and cities is their proximity to their workplace and easy commute. However, home prices in these areas are typically high. Suppose you’re one of the fortunate people who expect to continue a flexible working arrangement and don’t need to physically go to your office every day. In that case, you may want to consider selling your home in the city or suburb at a great price now so you can transfer to smaller, less expensive towns.
Bottom Line
Many financial experts believe that the hot seller’s market in late 2020 will continue until the end of 2021 or maybe even in the early part of 2022. However, this trend may lose its steam in the not-so-distant future. So if you’re contemplating selling your house, you should decide now and take advantage of the booming home market.