Top 5 Reasons It's Never Been A Better Time To Sell Your House
Selling your home is a big decision. It makes sense not to rush. If you are considering when is the right time, right now might be it. Typically, we advise caution. Right now, there are too many signs to ignore.
Why Right Now Is the Time to Sell Your Home
2020 has been a tumultuous year for everyone. Not only did we have a global pandemic, but we also had national lockdowns. Since the lockdowns lifted, the economy has sprung back to life. Now, it looks like everywhere is a seller's market. A confluence of activity has swiftly reversed course for the market. Now, things look tilted in favor of homeowners. Most likely, you've got substantially more equity in your home than you did last year. This is due mostly to the increase in home prices.
Demand Has Skyrocketed Since The Lockdowns Were Lifted
During the lockdowns, real estate activity dropped to a snail's pace. Nevertheless, the market has since been more like a rocketship. More people are moving currently than at any other point in history. Consequently, you'll have a hard time putting your home on the market without finding a qualified buyer.
Home Supply Is Still Low Despite the Demand Increase
Despite the record-breaking demand, inventory is still low. It seems many homeowners are still hesitating to list. As such, national listings have dropped year-over-year. This is one of the first years since 2008 that this has happened.
The Value of Your Home Has Probably Increased
Nonetheless, home values have been increasing at an incredible pace. In response to the recession, the Federal Reserve dropped interest rates dramatically. Now, they are committed to maintaining close to 0% interest rates. The most recent statements by the Federal Reserve indicate they plan to continue these low rates for at least five years. When interest rates drop, home prices increase. The reason is straightforward. When you go to apply for a mortgage, interest rates impact your monthly payment. Lower interest rates mean you can afford a larger mortgage overall. Thus, more people have greater purchasing power. All this combines to create an incredible inflationary pressure on real estate assets. Of course, you are most likely to notice this when you sell your house.
Mortgage Rates Are at an All-Time Low
As we mentioned, the Federal Reserve has quickly changed monetary policy. Throwing the nation into lockdown was a necessary step. However, it did put the economy into a tailspin earlier this year. The Federal Reserve stepped in to help prop up the market. One of their most powerful tools is their ability to set interest rates. When they drop interest rates, financing becomes more affordable. Someone without the income to afford the mortgage for your home last year might be able to afford one out.
The Economy Is In Recovery
Major economic indicators are looking good. Despite the historic drop in stock market prices, we recently hit an all-time high. The labor market continues to lag behind. However, we have fallen substantially off of the all-time high set earlier this year. Businesses are continuing to pick up the pace. Each week more people get jobs. All in all, things are looking good for people with assets. There are plenty of people looking to buy, and more than enough credit to go around.
The Seller's Market
The year 2020 will definitely be in the history books. Plenty of remarkable things occurred. However, it's important not to lose sight of the things that matter. We recommend checking the value of your home. If anything, it will motivate you to find someone willing to buy it. Considering the rapid increase in prices, you probably got some substantial equity. Why don't you capitalize on that by putting your home on the market? Then, you can use some of that equity to take yourself and whoever you would like on an amazing vacation.
Key Reasons to Sell Now
- Demand is high and supply is low.
- Interest rates are at an all-time low. Meaning, mortgages are now more affordable than ever.
- Property values are increasing rapidly.