As we move through what is by far one of the most challenging years America has ever seen, the housing market is exceeding all expectations. It’s recovering in what is being called truly remarkable by industry experts. The benefits of selling a home this season are plentiful, and worth exploring if you’re thinking of making a move this fall. Here’s why:
1. Buyers Are Actively in the Market
Buyers emerged from stay-at-home orders in droves, firing up the housing market while creating a significant demand for homes to purchase. According to the National Association of Realtors (NAR), existing-home sales increased by 24.7% from June to July, so it’s clear that buyers are actively searching for homes to buy. According to Lawrence Yun, Chief Economist for NAR:
“The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days…With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”
2. Inventory of Houses for Sale Is Low
While buyer interest is high, it’s becoming increasingly difficult to find a home to purchase. According to the Existing Home Sales report from NAR, total housing inventory is down 21.1% from this time last year. It was low going into the pandemic and has dropped even further. Buyers are scooping homes up faster than they’re coming to market today, and it’s resulting in more bidding wars and houses selling fast.
If you’ve ever wondered if it’s truly the right time to sell your house, consider doing it while homebuyer activity is high, like it is right now. It’s the basic rule of supply and demand. The best time to sell something is when demand for that item is higher than what’s available to purchase.
3. Home Prices Are Rising
With a growing demand and dwindling supply, sellers can negotiate top dollar for their houses today. Yun also notes:
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”
4. Mortgage Interest Rates Are Low
In addition, mortgage rates are not just low, they’re historically low. According to Freddie Mac, this summer rates dipped below 3% for the first time ever and have been hovering at record-low levels.
Low rates are fueling the high buyer demand, and they’re also setting up the perfect scenario for homeowners to sell their houses and make a move. Today’s rates are making homes more affordable, so locking in a low rate when moving into a new home means there’s an opportunity to get more for your money when you make a purchase.
People are also moving for a variety of reasons, and the recent pandemic has given homeowners ample opportunity to re-evaluate their current homes. Many are deciding they’d like more indoor space for an office or a gym, a place for their children to attend school virtually, or outdoor space for their families to safely play. Whatever is on your list, now may be the time to capitalize on low mortgage rates to make it happen.
5. Homeowner Equity Is High
One of the reasons the housing market crashed in the last recession was because homeowners owed more on their mortgages than their homes were worth, and many of them simply walked away. Today, that’s far from the case. According to CoreLogic, homeowners have an average of $177,000 in equity today. Leveraging that equity to make a move while mortgage rates are so low may be the golden opportunity you’ve been waiting for when it comes to your long-term homeownership goals.
Bottom Line
While our nation has seen ample hardships in 2020, the housing market is a sector that’s making one of the most significant recoveries from this crisis. With strength in the market clearly in favor of sellers, if you’re ready to take advantage of this unique moment, it’s an excellent time to sell your house and move into the home of your dreams.