With interest rates at historic lows and inventory of homes for sale down, this could be a good time to put your home on the market.
Here are just a few of the reasons why now might be a good time to consider selling your home to take advantage of this opportunity.
Since the COVID pandemic began, there has been record low inventory in markets all over the country. In fact, for years now, municipalities have been struggling with housing shortages. Tight markets have been driving up prices, making it difficult for first-time homebuyers and lower-income buyers to find a starter home.
In a variety of markets, low inventory has become the norm, leading to multiple-offer situations and frustrated buyers willing to pay well over asking price to secure a home in their chosen community. This issue hasn’t been limited to desirable in-town luxury buildings and neighborhoods, either. As more homeowners seek larger homes and outdoor spaces as a result of the pandemic, even suburban and rural markets are seeing a boost in prices and demand.
Ever since the COVID lockdowns of 2020, there has been pent-up demand for the few homes on the market, so now is the time to give those buyers something new to look at. Buyers who are out and about in this market are generally motivated to buy, not looky-loos just passing the time at an open house.
If you’ve been reluctant to put your home on the market because of the hassle of in-person meetings and endless papers to sign, you’re in luck. COVID-related social distancing measures led to an increase in the adoption of tech platforms for agents and brokers in markets both large and small. Digital data management and user-friendly policies mean that your real estate agent can work with you on your terms and timing, making the home-sale process more convenient than ever.
Streamlined virtual marketing
Gone are the days of keeping your home pristine for weeks or even months just in case a buyer stops by. With virtual marketing platforms, virtual open houses, and virtual tours you can plan better and enjoy a more convenient sales process. Video tours, professional photography, and 3D walkthroughs mean you no longer have to deal with the intrusion of Sunday afternoon open houses or late night “we were in the neighborhood and wanted to stop by” phone calls.
Low interest rates
One of the first steps the federal government took to combat the economic impact of COVID-related shutdowns was to drop interest rates, and these rates continue to remain at historically low levels. If you’ve been thinking about upgrading to a larger property or a new area, you’ll not only enjoy the benefit of increased buyer demand; you’ll also lock in those low interest rates for yourself.
Higher home prices
Low inventory, increased demand, and multiple-offer scenarios have been driving up home prices all over the country. In communities of all types, home prices continue to hit record highs. If you’ve been holding out on selling your home because you were waiting for it to reach its maximum value, this might be a good time for you to talk to your real estate agent about recent comparable sales in your area.
Changing buyer priorities
For years we’ve seen some markets winning out over others. Pundits have repeatedly announced the death of suburban enclaves and luxury communities, for example, while in town and exurban neighborhoods experienced explosive growth. Now, however, some buyers are leaving the cities and looking for homes with more land, more space, and more options. That means growth in both suburban and rural markets and in undervalued estate homes.
Much of the early pessimism around the housing market in the early days of the pandemic was caused by a false equivalency between economic recessions and drops in home prices. This was based on memories of the 2008 mortgage meltdown. However, according to economists, that downturn was an anomaly. In most recessions, home prices hold steady or even rise as investors flee the stock market and put their dollars into bricks and mortar. True to form, the weakening in the US economy has been balanced by a strengthening of the housing sector as enthusiastic buyers continue to buy.
Now that a variety of major corporations have flexible work-from-home (WFH) policies, employees who used to spend twelve-plus hours a day commuting and working in offices have found themselves trying to maintain their professionalism while working from home, possibly alongside children and a working spouse. It has created demand for more space so each member of the family can fulfill their obligations and enjoy a little privacy.
Homes with space for multiple home offices and additional living spaces are popular. In addition, as social distancing continues in many locales, many families have found that a larger backyard or recreational options like a private pool have become new necessities.