The prices of homes in the US reached their highest level in almost 14 years in August 2020. During the economic uncertainty of the coronavirus pandemic, the housing market continuously outperformed the overall economy.
For many people, it might be challenging to decide whether this is the best time to sell a home or not. While choosing to sell your house is a personal decision only you and your family can make, the real estate trends of 2021 point to the season also being very favorable to sellers.
When you sell your house, you’ll want to make sure that you do so with the real estate agency with the lowest commission rates. That way, you can keep more of the profit in your pocket.
If you’re on the fence about COVID home selling, take a look at these five reasons you should consider selling your home now.
1. Prices Are Up
Even though the economy took a downturn due to the coronavirus pandemic, housing prices have not declined due to economic uncertainty. In fact, house prices have increased in many areas, with many homes sold for more than their asking price.
The reason for higher prices is a result of the low number of houses on the market. Potential home sellers in 2020 chose not to do so due to the uncertainty stemming from COVID-19 and the virus’s potential economic fallout.
On top of the low inventory, mortgage rates are also at historic lows. That means that buyers are willing to pay more for the home’s sales price because they will pay less in interest over a mortgage’s lifespan.
Additionally, there is quite a bit of demand for housing. People living in urban areas in small apartments found themselves wanting more space in less dense communities. This created a demand for properties in the suburbs and even in more rural locations.
2. Inventory is Low
As of the end of December 2020, housing inventory in the US was at historic lows. By the end of last year, there were only a little over 1 million houses for sale on a national level, which is the lowest inventory number of available properties since 1982.
With low inventory and high demand, we are in a market where sellers genuinely have the upper hand. If you’re wondering, “should I sell a home right now?” then you should consider the fact that there will be a lot more competition from buyers for your home or condo in the current market. This can lead to an increased sell price for your home.
Another reason that inventory is low is that people who are sellers in this favorable market will also likely find themselves as buyers at the same time. When you sell your home, you will need another place to live, and selling now can place you in the buyer’s role in a competitive seller’s market.
This has made many people reluctant to list their living space while there is still economic uncertainty.
3. Mortgage Rates Are Low
During 2020, you might have noticed that there seem to continuously be news headlines talking about the fact that mortgage rates had hit a record low. In fact, by August 2020, mortgage rates had hit record lows eight times.
When mortgage rates are low, potential buyers have more purchasing power. Low mortgage rates also strengthened the amount of demand in the real estate market.
4. Demand Is High
If you know anyone who has tried to buy a house recently, you likely are aware of how competitive the market is. While there is increased demand for homes while mortgage rates are low, there is not enough inventory to fulfill all buyers’ needs in the market.
In any type of market, the price is a reflection of the balance between supply and demand. After the 2008 housing crisis, there was more supply and demand, which led to the value of people’s homes dropping. There is far more demand these days than supply, leading prices to rise, particularly in certain desirable locations.
5. The Economy Is Showing Slow Signs of Recovery
In March 2020, the US experienced record-high unemployment rates due to the coronavirus pandemic and the resulting economic shutdown. Since then, the unemployment rates have fallen slightly, indicating that the economy might be recovering slowly.
Tips For Selling a Home During COVID
COVID home selling is a different game than the housing market of old. You can do several things to ensure that potential buyers feel comfortable viewing your home during the ongoing pandemic.
For one, you might consider skipping open houses. You can also create “showing kits” containing items like masks, disposable gloves, hand sanitizers, and bootie covers. This way, the person looking at your property can feel protected while in someone else’s home.
You’ll also want to be sure to disinfect your home both before and after showings. You’ll want to focus on areas like countertops, doorknobs, drawer pulls, faucets, and light switches.
Are You Looking For the Real Estate Agency With the Lowest Commission Rates?
There are many reasons why 2021 is a good year to sell your house. If it makes sense for you to sell your home this season, you want to make sure that you find a real estate agent who has your best interest in mind.
If you are going to put your house on the market, don’t pay 6% to sell your home. Instead, choose the real estate agency with the lowest commission rates in the area. Last year, our average seller saved over $2,300. When you use Kenosha’s best realtors, you will save money.
Contact a Cove Realtor today to list your home.