Why Now is a Good Time to Sell Your House
“It was the best of times, it was the worst of times,” is one of the most powerful lines ever to open a work of fiction. The line has special relevance in 2020, as we navigate out of a pandemic and delicately find common ground on a host of social issues. We know the worst of times have kept us sheltering in place and trying to stay afloat financially. So, what represents the best of times in 2020?
If you are a homeowner wanting to sell your home, you understand that now is a good time to sell your house.
Let’s look at four reasons why now is a good time to sell your house.
Low Interest Rates
Before the first COVID-19 case made its way to the nightly news, most realtors and economists felt mortgage interest rates in the United States would fall under four percent for most of 2020. However, the onset of the Coronavirus pandemic sent mortgage interest rates to record lows.
In early March of 2020, the 30-year fixed-rate mortgage hit a record 50-year low of 3.29%. The record low rate for the benchmark mortgage loan prompted an overwhelming amount of interest from both home sellers and home buyers. The demand for 30-year mortgages forced many lenders to ramp up the resources required to process home loans.
Patrick Boyaggi, who is the CEO of the mortgage technology company Own Up, said, “Lenders are lending money, and they will do so if you want to refinance and if you’re looking to purchase Rates are near historic lows, and lenders now have the ability to underwrite and process loans in a timely fashion.”
In late April, a report released by Freddie Mac stated the average mortgage rate stood at a record low 3.33%. As we head towards the end of July, mortgage rates remain low, which makes now a good time for Lehigh Valley, Pa homeowners to consider putting their houses on the market.
Low Home Inventory
Spring typically represents the busiest time of year for realtors. However, starting in March of 2020, the inventory of homes on the market reached a five-year low. The classic economic law of supply and demand has put home sellers in an enviable negotiating position. Although demand has not spike because of the COVID-19 pandemic, the low inventory of homes on the market has given homeowners an advantage in the housing market.
Despite shelter in place orders, home byers have not sat back and waited for the healthcare turmoil to subside. Digital technology in the form of online listings and virtual house tours have kept eager home buyers engaged in the home buying process. The result has created a void between active home buyers and amount of homes available in the marketplace. Higher demand than supply means home sellers can earn an attractive profit by selling their homes.
Selling a Starter home
If you are looking to sell a starter home, many real estate analysts believe now is a good time to sell your house. Realtors such as Ron Abta emphasize that although the Coronavirus pandemic has hit upper end homes hard, entry level houses remain a viable option for both buyers and sellers. “It’s the upper end of the market that might be harder hit,” said Abta. He noted that even with most states implementing some type of shelter in place order, entry level homes remain active in the home selling market.
2020: The Year of Relocation
Americans are on the move, and that is one of the most compelling reasons why now is a good time to sell your house. The COVID-19 pandemic has given many of us ample time to reflect on where we are on our life journeys. Reflection has prompted many homeowners to at least consider putting their homes up for sale.
Rushing to sell your house during these uncertain times is not the way to go. Approach home selling the same way you approach it during times of stability.
