It is a seller’s market. Last year, buyer demand went up due to low mortgage rates. Due to the lack of inventory, home prices went up as well. On the other side, last year lent itself to a huge refinance boom and many homeowners took advantage.
Pros to Selling Right Now
Today, mortgage rates are at their lowest levels in history. This means, that most buyers can afford more home than they could just last year at this time. Many economists predict that interest rates will remain steady through 2021. And there is a shortage of homes on the market, thus leaving sellers with a good chance of getting more for their home.
According to the National Association of Realtors, contract signings rose 21.4% from December 2019. Places that saw exceptional growth were Portland, Las Vegas, Denver, Los Angeles and Boston. Buyers are looking to buy, they just need homes on the market.
CoreLogic reported just last week that home prices soared 9.5% in November compared with 12 months ago – the largest increase since May 2014. With rate remaining low, existing-home sales are likely to reach 6.49 million. That would be a 15% increase from 5.64 million in 2020.
If you have been looking to sell your property, now is the time. Buyers are waiting on the sidelines and hoping to find the home of their dreams.
Cons to Selling Right Now
Last year also lent itself to a huge refinance boom. As interest rates dropped, a lot of homeowners took advantage and refinanced their mortgages at lower rates. If you recently refinanced your house, you’re probably in a better place to afford your current mortgage than if you were to buy something new.
Also, if you are currently in forbearance, you may have questions on if you can sell your home or not. In most cases you can. But any money you haven’t paid for the past year or so will be added to your total payoff.
We are always here to discuss your current situation and see what path makes the most economic sense for you and your family. Reach out to us today and we can start the conversation.
