The pandemic shifted everything, including the real estate market. It led to the loss of many jobs and the closure of business, which affected home buying and selling. In return, we are seeing an unpredictable trend making it uncertain when to sell the property. The following is a discussion on when you should sell your house in 2021.
When You Need to Move
When you want to move in 2021, you can sell your present homes and begin looking for another. It, however, depends on why you are moving and where you want to go. One viable option you would like to move is when you lost your job, and you are getting it hard to continue with the mortgage. It would be best to sell your current home and get a more affordable option in this situation. It would be best to liaise with your moving company or Real Estate Company and weigh the available options.
You will find it a lot easier if you exist in a market with quick home sales because the low inventory will help you sell faster. In 2020 the demand for homes decreased by a significant margin, but in 2021 there are projections that it will go back high. The inventory last year was meager. It went up to 22%, which meant the available homes weren’t just enough for the available sellers.
With low inventory, expect to see your mailbox flooding with offer letters because your home will be among the available few aired for sale. That way, you will be in the driver’s seat, moving at a pace that suits your schedule and picking the best offers in the pool. With patience and perfect strategy, you will land a one-of-a-lifetime offer. After selling, buy a new home and hire the best moving company in the area to help you shift.
When You Are Selling a Starter Home
If you have a starter home, 2021 will be the best time to sell it, mostly if you stay in an area with fast-rising home prices. In these places bidding wars are common, which sees many first-time homebuyers going for homes valued at entry-level prices.
However, this will depend on where the home is as the entry-level prices vary according to the geographical location. In most cases, it always falls in the lower third of the prevailing home market prices in the specific area.
One factor driving this high demand is the lack of available homes for buyers in the current market. It works to the advantage of sellers; many eager buyers create a stage for multiple selling options and let sellers dictate the prices.
With the seller dictating the prices, they can only sell the homes at a profit. To get the best starter home offer, we recommend working with the best real estate agents or consulting with your trusted moving company on the local market rates.
When There Is a Projection of Decline in Interest Rates
In early 2020 there was a prediction that mortgage interest rates would go as low as below 4% for a better part of the year. Things got even worse with the pandemic as the rates plunged further as we saw fixed-rate mortgages hit 2.71%, which is the industry’s record lowest in 30 years.
The low rates are a sign of affordable mortgages. However, there is high demand, and the number of buyers exceeds the market’s number of properties. The increased demand and decline in supply are undermining the effect of low mortgage rates in the real estate market.
In 2021 we expect the interest rates to go up but will remain lower than before 2020. If the rates stay, these low home buyers will have the motivation to make purchases sooner rather than later. However, when the rates begin to rise, which will happen later in the year, you should plan to keep your property in the market a little longer. Suppose you do not have plans of moving soon, utilize the benefits of these low-interest rates and refinance your mortgage. As a result, you will be shortening your payment schedule.
Interesting Related Article: “3 Ways To Sell Your House In 2021“