An old rule of thumb in real estate is to wait until the flowers start blooming to put a house on the market. There is some basis for that cliché: Spring is the time when people get their tax refunds, the weather is great, and summer break is quickly approaching. And while that is usually the case, this past year’s home sales have shown an unprecedented break from typical seasonal trends. If you’re on the fence about selling your home, don’t be! We’ve pulled together some of the top reasons why now is the best time to sell your home.
1. COVID has impacted the way people see their homes
COVID-19 has undoubtedly affected each and every person in one way or another. It has also impacted the way people use their home and their thoughts on where they want to live. During the pandemic, the home was not only a living space, but it also served as an office, school, gym, playground, and everything in between. This resulted in people wanting additional indoor and outdoor space, and specifically separate spaces for working and living. More and more people started to look for a better housing situation that would accommodate their new living situations. The housing market quickly became a seller’s market.
2. A seller’s market
According to Investopedia.com, a seller’s market is a market condition characterized by a shortage of goods available for sale, resulting in greater pricing power for the seller. A seller’s market is a term commonly applied to the real estate market when a low housing supply meets high demand. And that’s exactly what’s happening right now. Although 2020 was a difficult year for most people, the housing market soared. In 2020 and 2021, amid the ongoing fallout from the COVID-19 pandemic, the market for housing has surged. This makes it a prime time to sell your property.
3. Low mortgage interest rates
In 2020, mortgage rates dropped to the lowest point in history. Although they have slowly started to increase as life shifts back to normal, they are still extremely low. You can expect a 3% interest rate for a 30-year fixed mortgage and 2.5% for a 15-year fixed mortgage.
As the pandemic continues and work from home is increasingly common, people have become more aware than ever of the inadequacies of their current homes. The historically low-interest rates have prompted buyers to pour into the housing market, trying to find a home that is better suited for their needs. These low-interest rates could help potential buyers save hundreds per month on their mortgage payments, rapidly adding up to thousands saved over the years.
Not only do low mortgage rates translate into more prospective buyers interested in your home, this means you’ll save money when it comes time for you to purchase a new home after selling yours. The low-interest rates enable you to buy a larger property with more space for your money — something everyone can benefit from!
4. Demand for houses is high, and supply is low
Across the U.S, there are fewer homes on the market, which is helping to push prices sky-high. Housing inventory declined 39.6% at the national level in 2020. This has resulted in sellers having all the bargaining power because there are so few homes for buyers to choose from. Needless to say, it’s a smart idea to sell when inventory is low!
5. Houses are selling for more money than usual
Home prices have skyrocketed during the pandemic, and they’re not expected to drop anytime soon. Low inventory has led to bidding wars, with buyers frequently bidding over asking prices on homes. A new report from the real estate brokerage firm Redfin found that 39% of homes sold above their listing price during the four-week period ending March 21, 2021, making it an all-time high record. That figure is 15 percentage points higher than during the same stretch of time a year ago! Redfin also noted that the median home sale price reached $331,590, which was a 16% increase from the previous year. Additionally, research from Zillow indicates that home values have risen in every one of the 50 largest metropolitan areas nationwide.
6. Houses are selling fast
Not only are houses selling for more money than usual, but real estate is also selling extraordinarily quickly. Realtor.com conducted a study on the metropolitan areas where homes were selling fast as compared to those where homes were taking the longest to sell. This study revealed that across the country, homes spent a median of 43 days on the market in April 2021, which is nearly three weeks faster than the same time last year. Buyers are moving quickly, and they recognize the need to make an offer on a home without wasting any time.
7. The world is remote
There’s another reason why now is a great time to sell your home: The world is becoming increasingly remote. Gone are the days when the home was where the company was. In the past few decades, home opportunities have been increasingly concentrated in a handful of superstar cities, which has drastically driven up the cost of living and resulted in a lack of new housing supply. In response, companies of all sizes have adopted a remote work policy. In fact, according to Upwork’s Remote Work on the Move report released in October 2020, 14 million to 23 million Americans are planning to relocate to a new U.S. city or region due in part to the growing acceptance of remote work. The vast migration, which was primarily driven by the pandemic, comes after many companies announced plans to shift jobs to remote work permanently. According to a recent survey from Intermedia, 57% of small- and medium-sized businesses plan to offer remote work. All this to say, COVID-19 has revealed that the ability to work from home means a significant number of households will move out of the area they currently live in. What does this mean when it comes to selling your home? This means you can sell your home in a city you don’t want to live in, and the chances are it will sell quickly and for a pretty penny.
8. Ensuring you get your money’s worth
The average homeowner may buy or sell a house only a few times in their lifetime. As such, when it comes time to sell, you want to make sure you get your money’s worth. There are a few important ways you can set yourself up to make the most of your home selling strategy. First, work with a local expert and make sure you have a real estate agent you trust. Finding the right agent influences all aspects of selling. They will guarantee that you correctly time your sale, set the right price, and help prepare for listing.
Second, you’ll want to make sure to time your sale appropriately. Research has shown that the best time to list a home is in early spring, although the pandemic has revealed a red-hot market year-round. Here are some other tips and tricks to ensure you make the most money selling your home.
If you are ready to explore homes for sale in Michigan, contact Austin Black today. Austin has years of experience as a real estate professional working with an extensive network of both sellers and buyers and is ready to help guide you through this process. He serves a wide range of communities and is an expert in everything from Birmingham condos to historic homes in Detroit. Whether you are looking for a forever home or a vacation house, he is available and eager to help you find that.