You may be thinking a pandemic might not be the best time to sell your house, but it’s actually quite the opposite. Generally speaking across the country, the housing market is still a sellers market. With mortgage rates at historic lows, and home buyers looking to move out of cities into the suburbs, there are still plenty of people looking to buy a home. This means if you haven’t listed your home yet, now might be the time. If you’re on the fence and asking yourself, “Should I sell my house?” here’s why selling a house in 2021 may make sense.
As you read on, remember heroes like firefighters, EMS, law enforcement, military (active, reserves and veterans), healthcare professionals and teachers can save an average of $2,400 when they use Homes for Heroes specialists to sell their house! Simply register to learn more with no obligation.
Housing Market Trends – Sellers Market?
There are several trends happening in the U.S. housing market you should know about. Where you’re located and the type of home you want to sell makes a big difference when considering whether to sell your house this year.
Hot Markets – Price Correction
In the West, hot housing markets like Los Angeles, Seattle and San Francisco experienced large home price increases over the past couple years. This led to a pretty dramatic cooling trend so far in 2020 with more than double digit sales declines over last year. Homes became too expensive in these markets. However, experts now say prices in these markets have corrected themselves, or are in the process of correcting themselves this year.
Permanent work from home options, especially at companies based in the high cost of living areas of Silicon Valley in California like Google and Twitter, are no longer dictating where people have to live. Remote work could lead to a surge in people moving to a more desired location, or at least somewhere more affordable. This will also add more buyers to an already saturated market.
Affordable Markets – Prices Still Rising
Many more affordable markets across the country have managed sales increases this year. Median home prices have soared 14.5% since this time last year, from $266,200 in January 2020 to $310,800 in December 2020. If you’re in a more affordable market, for the time being home prices are continuing to rise. This is good news for sellers. Interest rates have lowered and the number of homes for sale is increasing. However, because inventory levels are still fairly low in most markets, home buyers may enter bidding battles to get the home they want. This is especially true in the “starter home” price range. This is also good news for the home seller who may receive a bid higher than the asking price.
All that said, nobody really knows what will happen the remainder of the year. As Coronavirus vaccines become more widely available, unemployment rates hopefully decrease, and the economy starts to recover, we could see an unprecedented rise in demand for houses. Timing the housing market can be difficult, so let’s get back to the question, “Should I sell my house this year?” If you’re in one of the more affordable markets, generally speaking, it’s a sellers market still and 2021 may be a great year to sell your house!
Interest Rates
To combat the economic effects of the Coronavirus pandemic, interest rates in 2020 hit an all-time low 14 separate times. The Federal Reserve, who influences adjustments in mortgage rates, announced that they will not be raising rates for the foreseeable future. In December 2020, a 30-year fixed rate mortgage was as low as 2.66%. These low rates make right now an attractive time to buy a home, especially for first time home buyers. Lower interest rates will save them money in the long-run by purchasing a home now. This means there will be a large potential buyers pool for someone looking to sell their home in 2021. Plus, if you are buying a new home after selling yours, you will also benefit from these lower rates.
Economic Outlook
The U.S. had a record growth of 128 months of growth that ended in March 2020. While the uncertainty in the country and the world led to a recession, the U.S. economy started to dig itself out in Q3 of 2020. The Federal Reserve, said they will not raise rates for the foreseeable future, which helped consumer confidence. The stock market even finished 2020 at record highs, despite taking sharp downturns at the beginning of the pandemic. Stimulus plans for small businesses and individuals also played a role in predictions for an economy to start to stabilize.
This is all good news for sellers. A stable economy increases consumer confidence, meaning there will be more buyers looking for homes. Some experts are predicting the economy will start to return to normal as the Coronavirus vaccine is administered and people can return to work. Are you still asking yourself, “Should I sell my house?” We can tell you this, selling your house while the economy is strengthening, average home prices are higher, and interest rates are favorable is a pretty darn good outlook for any home seller.
Supply and Demand
The old economic principle of “supply and demand” is as relevant as ever when it comes to the real estate market in 2021. Part of the reason the last few years have been good to sellers is because of a severe shortage of homes on the market. The lopsided ratio of buyers to available homes meant bidding wars and homes going for well over asking price. This is still happening across the country in many markets, but the inventory of homes for sale has been on the rise. This may mean that prices fall as competition increases, so getting your home on the market sooner versus later may be a good move.
There’s also good news for anyone who owns a home priced below $300,000. There is still a large demand for these types of homes and a shortage in inventory. Anyone looking to sell a home in this price range may actually see a slight boost in the sale price, and that’s thanks in large part to millennials.
Recent Impact of Millennials
Millennials are creating some disruption in the real estate market. Over the past decade, many millennials chose not to buy a home and continue renting. However things are changing. It may be due to the strong economy of 2018 until the start of the pandemic in early 2020, or maybe they have finally saved enough for a down payment. Either way, more and more millennials are looking to buy a house in 2021. Experts say these first-time home buyers may be joined by large numbers of older millennials who own a “starter home” and are looking to upgrade. In either case, the coming of age for the millennial population looks to be a boon for anyone selling a house in 2021.
Save Money When You Sell Your House
Heroes who sell a house with the help of our specialists save an average of $2,400 in Hero Rewards. If you’re ready to take advantage of this sellers market, register with Homes for Heroes today. There’s no obligation and you’ll be automatically matched with a real estate specialist in your area. They can help you get top dollar for your home and save money throughout the process so you can put even more money in your pocket.
