Dear Olivia,
We’ve been wanting to sell our home and downsize to something more manageable, but we’re worried that it would just sit on the market because of the pandemic. Is this the case?
Sincerely,
Worried to Sell
I think we all share in your anxiety about the pandemic, but believe it or not, now is actually a really good time to sell your home.
I’ve been keeping an eye on real estate trends, and industry experts are saying that this summer could actually be one of the best times to sell a home in recent years. This is in spite of the pandemic, the economy slowing down, and many people being laid off.
There are several key reasons why selling your home this summer is a good idea.
It’s a Seller’s Market in Many Areas
We’re seeing a lot of people searching for new homes, which is great news if you’re a seller! Because of reduced inventory, there are more buyers than there are sellers, and that’s led to the development of a sellers’ market in many areas of the country, including Fremont County.
In fact, according to the National Association of Realtors’ Pending Home Sales Index, which looks at upcoming home sales based on properties currently under contract, pending home sales increased by a whopping 44.3 percent in May. This shows that buyers are ready, willing, and able to purchase homes, and yours could be one of them!
Combined with very low inventory – about 27 percent lower in June of this year than in June of 2019 – that makes for a very strong sellers’ market. This, in turn, could mean a faster sale for you or even multiple offers on your home.
Home Prices are Up
The combination of increased demand and low inventory means that sellers can get top dollar for their homes. This doesn’t mean you can list your home for a crazy price and expect to get it – it still needs to be supported by local market conditions.
But, since home prices increased by nearly 8 percent in the first quarter of 2020, it’s a good time to list your home for a price that’s higher than what you could have listed it for this time last year.
Granted, every real estate market is a little different, but as a rule of thumb, home prices are very strong and that favors you as a seller.
Mortgage Rates are Historically Low
Mortgage interest rates have been historically low for quite a while, but they keep getting lower and lower.
For example, as of mid-July of this year, Freddie Mac reported that average interest rates were at 2.98 percent for a 30-year fixed mortgage. That’s a new record low, and the first time mortgage interest rates have been below three percent in 50 years!
Obviously, the lower the interest rate, the less that buyers have to pay over time, so it’s a smart move to find a home now and capitalize on the low rates.
These low rates can benefit you too – if you need to finance your next home, you might be able to get a loan with an extremely low rate. You can save potentially thousands of dollars over the life of the loan while also potentially selling your home for a higher price. It’s a win-win!
So, while it’s understandable to be uneasy about selling your home in these trying times, the data suggests now is a great time to put your home on the market. As always, if you need additional information, don’t hesitate to contact me at 307-856-3999!
~Olivia