Is 2021 the Year to Sell My House?
Are you ready to sell your house? You may be dying to move, either because you outgrew your space, are now working remote, or are tired of condo life and have always dreamed of inhabiting a large home with a backyard. Whatever the reason, we can tell you with certainty it’s a seller’s market and these favorable conditions will not last forever. Take our quick quiz to find out if 2021 is the right time to list your home.
If you’re still on the fence, consumer sentiment about selling today should boost your confidence in the right direction. Even with the current health crisis that continues to challenge our nation, Americans (in general) feel good about selling.
Inventory Remains Low
There’s simply not enough homes available to meet today’s buyer demand, and homes are selling just as quickly as they’re coming to the market. According to the National Association of Realtors (NAR), unsold inventory available sits at about a 2.3-month supply at the current sales pace. This record-low inventory is not even half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory to balance out.
High Buyer Demand
Low mortgage rates have created an increase buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the year.
It’s a Seller’s Market
With so few homes available for buyers to choose from, we’re in a true sellers’ market. Homeowners ready to make a move right now have the opportunity to negotiate the best possible contracts with buyers who are feeling the pull of intense competition when it comes to finding their dream home. Lawrence Yun, Chief Economist for NAR, notes how quickly homes are selling right now, further confirming the benefits to sellers this season:
“The market is incredibly swift with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates.”
However, this sweet spot for sellers won’t last forever. As more homes are listed this year, this tip toward sellers may start to wane.
Buyers' Needs Have Changed
Along with working remotely, people have been spending more time at home in general—and this, in turn, has sparked a flood of buyers whose current homes no longer seem as comfortable or roomy as they were pre-COVID-19. That is, if your dining table now doubles as your "office," you might be tempted to trade in your short commute for another room or two so everyone can work from home in peace.
Good Things Don’t Last Forever
Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase. According to the National Association of Realtors (NAR), we are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago. However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons:
- As the health crisis eases, more homeowners will be comfortable putting their houses on the market.
- Some households impacted financially by the pandemic will be forced to sell.
The bright spot for buyers is that more homes are likely to become available in the last six months of 2021. That should give buyers more options to choose from and take away some of their urgency.
If you’re ready to make a move, you can feel good about the current sentiment in the market and the advantageous conditions for today’s sellers. Contact our team to determine the best next step when it comes to selling your house this year.