The housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time lows.
If you’re on the fence about selling, you have a few choices: You can put your house up for sale soon to take advantage of the current demand, you can wait out the pandemic (however long that takes) for a more vivid picture of the future of the economy, or you can opt to stay in your current home for the foreseeable future.
According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. That’s not the case, however, on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:
As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand.
NAR also just reported that the actual number of homes currently for sale stands at 1.28 million, down 22% from one year ago. Additionally, inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory – significantly higher than it is today.
Here are three reasons you should sell your home in 2021
- Sell in 2021: Interest rates are expected to remain low.
- Sell in 2021: You have a starter home.
- Sell in 2021: You need to move.
What does this mean for buyers and sellers?
Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since bidding wars are more common when so few houses are available for sale.
Sellers may not want or need to wait until spring to put their houses on the market, though. With such high buyer demand and such a low supply, NOW is the perfect time to sell a house on optimal terms. $$
Waiting for a more balanced market is a good idea for some homeowners, and it’s unlikely to hinder your ability to get a good price for the house you sell. In a market where supply and demand are more balanced, you’re less likely to see multiple offers and sale prices well above the asking price, but you’ll still see positive home value growth.
If you need a professional on your side to help you decide if right now is the right time, email me today! email@example.com