Top Reasons to Sell Your Home During the Pandemic

To say the summer of 2020 has started off in a strange way is not giving enough credit to the meaning of “strange.” No, the COVID-19 pandemic did not disappear, and in fact, the virus appears to be making a comeback in certain areas of the country. The economic impact of the novel Coronavirus has forced millions of Americans into unemployment and thousands of small and mid-size businesses to shutter their companies for good. With all the economic turmoil, it should not surprise you that many homeowners that planned to sell their homes in 2020 took a step back from the selling process to reflect.

Danielle Hale, who is the Chief Economist at realtor.com, said in a recent interview, "Given the pandemic and uncertainty it's caused, the general sentiment [among some owners] is that now is not a good time to sell your home. Yet so far, the data suggest the opposite—that buyers outnumber sellers in the housing market, which means it's better to be a seller than a buyer.”

Here are six reasons to sell your home during the pandemic.

Demand is Back in Full Force

As Kale said, housing demand has regained the robust pace it had delivered throughout 2019. Despite many states imposing shelter in place edicts, the time at home led many potential home buyers to take virtual tours of available properties on the market. As we transition back into more of an open economy, the number of virtual tours should remain at a high level. In May, home sales rebounded to increase by nearly 45 percent, which represented the largest monthly increase since 2001. The first half of summer has kept the home demand train rolling.

Low Home Supply

As the other half of the classic economic law, low supply has helped homeowners gain the upper hand during sales negotiations. The low home inventory also means home sellers can expect an increase in interested buyers. "There was insufficient supply last year," said Lawrence Yun, who is the Chief Economist of the NAR. "This year during the pandemic, the shortage has intensified." According to a report released by realtor.com, June’s housing inventory sat around 27 percent lower than at the same time in 2019.

Great Incentive to Borrow

Historically low mortgage interest rates have also fueled a significant uptick in home demand. According to a press release from Freddie Mac, average interest rate as of July 1 hit a new record low of 3.07% for a standard 30-year fixed-rate mortgage. The record low mortgage interest rate translates into home savings that approach tens of thousands of dollars. It is not surprising to learn that mortgage applications have ramped up since the end of 2019.

High Demand, Low Supply Equals Higher Home Prices

With a low inventory of houses on the American market, and record high demand, the perfect economic storm has arrived for homeowners that want to sell their properties. A majority of home sellers should be able to receive top dollar for their houses. Single family homes increased in price by an average of 7.7% to more than $274,000. Many sellers did not anticipate the rapid rise in home prices, which means the same sellers are playing catch up to attract home buyers.

Signs of an Economic Recovery

The disastrous economic news released in March of 2020 meant the American economy had hit rock bottom. Nearly four months later, there are signs the nation is on the road to economic recovery. The pandemic dampened business investment and consumer spending in March, April, and the first half of May. Since the middle of May both business investments and consumer spending have jumped substantially. Continuing expected spikes in COVID-19 cases in certain areas of the country should not curtail the new economic expansion.

Changing Home Buyer Needs

If the COVID-19 pandemic has taught us anything, it is vitally important to understand that where we live matters. Combined with civil unrest that unfolded at the end of May and early June, the COVID-19 pandemic has triggered relocation fever that has hit a large swath of the American population. With millions of people relocating, the demand for buying homes should remain strong for months, if not years to come.

Have a question about selling your home? Contact us today.