The coronavirus pandemic has upended almost every aspect of our life and the economy – including real estate. Although the real estate market saw some dark days in early 2020 when the lockdown was at its most severe, the start of a return to everyday life and loosening of restrictions has allowed the housing market to come back with a vengeance.
If you’re looking to sell your home in 2021 – it is the year for you! It may not be intuitive to consider during a pandemic and an uncertain economy, but the data shows the current market heavily favors the sellers. Still not sure if this is the right time to sell? Here are five reasons why people are selling their homes right now!
The Pandemic Has Changed Homeowner’s Needs
People are spending more time in their homes than ever before since the pandemic began, and naturally, people have discovered that their housing needs have changed. Buyers right now are looking for something bigger, more privacy, and better outdoor spaces. With so many companies having long-term or permanent remote work setups, there is an increased need to have a home office space.
As a seller, you can make sure your home stands out against other listings by playing up those features – consider staging the rooms, get professional photos taken, or invest in a video tour or 3D virtual tours. Buyers want to see as much as possible without dealing with the pandemic restrictions and limitations on open houses.
Buyers Are Back Out In Full Force
Even with remaining restrictions and limitations on viewing houses in person, most people have been able to return to the plans that were canceled in 2020, including getting ready to buy a home. The highest demand is seen in the suburbs and smaller cities – the increase in remote work, even at corporate giants, has allowed people to expand their living options and live farther outside where their work was located.
Anyone who has lived in a more expensive city for work may now be able to move out and purchase a home instead of the likelihood of renting in more competitive real estate markets like cities in California or New York.
Mortgage Interest Rates Are Low, And The Economy Is Slowly Recovering
Another reason driving buyers to check out available listings is historically low mortgage interest rates combined with a slowly recovering economy. As people have become less stressed about the security of their finances and jobs, mortgage applications have increased due to home buyers’ incentive to pay thousands less over the lifetime of their mortgage payments.
Low Housing Inventory = Better For Sellers
Supply and demand are currently heavily in favor of sellers – despite the number of people who want to buy a home, the actual inventory of available homes is low. That is not just due to the pandemic and uncertain economy; there is a generational difference in how much longer people stay in their homes before selling.
Increased Demand + Low Inventory = Rising Home Prices
When real estate listings are scarce, and buyers are plenty, the potential for mass profit from selling homes is high. That becomes particularly clear at the higher end of the real estate market – Vice President Kamala Harris sold a condo in San Francisco for 63% more than what she bought it for in 2004. A property in the highly sought-after neighborhood of La Jolla sold in two weeks for almost 10% higher than the original asking price, $6.998 million.
Recently, billionaire Rick Caruso listed his Malibu, California property for $40 million – after purchasing it for $11.3 in 2008. This competition will be seen at all levels of the real estate market and will drive up the competition and the prices of homes in suburbs and smaller cities, all the way to highly coveted neighborhoods.
If you consider selling, act before property values begin to drop and the housing inventory starts to increase! Attract buyers by giving them the best and easiest experience possible, and be prepared for things to change quickly throughout the process of selling your home.