Should I Sell My House Now or Wait?
We all know that we are living in a crazy market since last year causing an unprecedented supply shortage. Certainly, it is tempting to blame the pandemic situation, but there are a couple of reasons why sellers have not jumped into the market to put their properties for sale. Every scenario is different but currently, we are in a strong sellers’ market. However, we don’t know until when this demand will continue since prices continue to climb and interest rates are also increasing. So because of this, the market could cool down. In other words, right now is a great time to sell a house but who knows six months from now, and here are 3 reasons why sellers should stop waiting to sell and list their properties for sale sooner rather than later.
Peak Home Selling Season
If you don’t know the peak home-selling season has already started in April and according to different data, this will last until July. The more we move forward with the season, the more properties we should expect to come to the market. For now, you still don’t have competition which is good as a seller. And, you certainly don’t want to keep waiting to sell because we don’t know until when this buyer’s demand will last if the prices keep increasing. So yes, we should see more inventory coming to the market during the peak season, and that is the first consideration for those thinking to sell a home in 2021. Selling now means you could potentially sell your home for more money compared to those who think that is better to wait.
Supply Shortage Favors Sellers
Home buyers probably don’t want to hear this but the high demand and tight inventory conditions have only shifted the real estate market in the seller’s favor. However, it won’t be like this forever. There is a high probability that the inventory increases in the coming months. In fact, we saw a big jump between February and March in new listings on the market. I have noticed an increase in inventory for the last months. So I am assuming that in April numbers will continue this trend. We will see that once the numbers of last month are out.
Yet, still low inventory for the buyer’s demand and this is another trend that favors sellers. Those who sell in the first half of this year will benefit from the ongoing lack of inventory. But you need to keep in mind that we are starting to see some improvement on new inventory coming to the market, meaning that the market could soon be starting to shift. Remember, if this trend continues, it will be more difficult for you to find the right offer for you.
Rising Prices and Interes Rates Could Cool Down The Market
By now we know that the historically low mortgage rates fuel the housing market since last year. However, this year the trend of the mortgage rates looks different. Mortgage rates have risen. In fact, Freddie Mac and Mortgage Bankers Association expect to see higher rates toward the end of this year and into 2022. This could definitely have a cooling result on the housing market, making it harder for you to sell a home.
Of course, the rising prices play a big role here too. The most important I would say.
To start, not even a global pandemic situation could stop rising house prices. This is a major consideration for you thinking to sell in 2021. So, as prices continue to rise, less people will be able to afford to buy. Less buyers qualify to buy a home and therefore the market will cool and the trend will change. You have to consider that if mortgage rates and prices continue to increase, the same trend will take many buyers out of the market.
If you plan to sell in 2021, don’t wait. This seller’s market won’t last forever. All these 3 reasons I just gave you have huge weight and a very important role in this 2021 Market. The data shows that there are more sellers in the market and it is expected this trend. More inventory will continue in the coming months. On the other hand, prices keep rising and it will eventually and automatically eliminate those buyers who can’t afford to purchase a home and it will reduce the buyer’s demand over the coming months. So yes, it is currently a good time to sell as inventory is still low for the high demand. However, it is not known how long it will favor you as a seller.
Don’t hesitate to contact me if you are interested to know more about the home buying process or you have questions about the process.
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Sharon Colón
Your Favorite Real Estate Agent in Miami
Home Miami Realtors
786-376-2398
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www.sharoncolonre.com
