While not the case with most other parts of the economy, the housing market remained relatively unscathed when it emerged from 2020. In fact, some might characterize it as being stronger than ever. High demand, bolstered by low mortgage rates, has resulted in higher home prices—and that’s a story that’s played out here in Arizona as well as across the country.
Despite the strong seller’s market, however, there are plenty of homeowners remaining on the sidelines, wondering whether 2021 is the year they should sell their home. Here are just a few of the reasons why this is a great time to put your home on the market:
Home values continue to rise
Home sale prices are up 12.3% year-over-year, and the median existing-home sales price has hit a historic high of $329,100, with many industry analysts forecasting a continued upward trend through the next several months. However, values are expected to level off by the time winter arrives, with rates slowing down to something more akin to normal by the time 2022 arrives. If you’re thinking about selling and want to maximize your sales prices, it’s probably best not to hesitate too long in 2021.
Equity gives homeowners an upper hand
First-time homebuyers are finding rough waters as they try to save enough for a down payment while watching home prices surge upward. That gives current homeowners the upper hand when they’re ready to buy because they can rely on their home equity, typically giving them more buying power and the advantage when competing against first-time buyers.
Interest rates remain at record lows
Last year saw mortgage rates drop lower than they’ve been in nearly four decades. Rates are likely to remain low for much of this year, spurring buyer demand and leaving sellers to enjoy quick sales at list price or better. Those low rates are not only good for the existing pool of buyers, but for you as a homeowner, if you are thinking about upgrading before going on the market and want to rely on a second mortgage to do the job. Instead of paying high interest rates that eat away any profits from the investment, homeowners can save and make a decent return as well. Of course, it also means you can enjoy low interest rates when you become a buyer.
Changes in home inventory
With the housing inventory reaching all-time lows, it’s been a seller’s market for quite some time now. However, it’s expected that buyers will at some point slow their home search and take a break from the feeding frenzy that characterized the spring market. At the same time, homeowners will start to list in increasing numbers as they begin to realize how their home values have grown in such a short period of time.
If you have some equity built up in your existing home and were considering a move, the next few months of 2021 could be your best bet for capturing maximum profit on your existing home while getting a historically affordable mortgage on your new one.
As an Offer Company agent, I’ve got a number of options for selling your home, all which allow you to take advantages of higher home values. Give me a call, text or email to learn more.
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