Anyone who has been paying close attention to the real estate market during the unprecedented COVID-19 pandemic knows one thing: the real estate market is hot. Home sale prices for median properties are rising across many states, and we see historic numbers in headlines more frequently. The main driver if this is the low real estate inventory market.
If you’re planning to sell your home amidst the pandemic, you must be wondering whether all this is true. Should you sell your home now? How long will it last on the market? What’s driving the recent numbers? Here are some insights you should keep in mind:
Historically Low-Interest Rates
Interest rates are remarkably low, which is likely one of the primary driving forces making buyers get off the fence. As noted by Houzeo, while the low rates are meant to hold the market together during this crisis, it offers buyers the opportunity to buy homes at more affordable rates, and it allows you to sell your home much quicker.
With the historically low-interest rates, buyers are willing to offer higher prices for homes that they would if the pandemic slows down, rates start hiking up. What this means for buyers is the more dollars directly into their pockets. Selling a home may not be in your plans, but with the rates at current levels, it would be a perfect decision now.
The Spring Market Effect During the Pandemic
The COVID-19 pandemic has heavily impacted the spring market, which runs from March through May, resulting in more robust home sales throughout the usually slower summer months. When combined with low real estate inventory, we can see home prices going up, and appraisals keeping pace as home buyers show interest.
This 2020 summer season is now acting like the past years’ springs market due to the lockdown measures that slowed down real estate. It means that with the current boom in sales, more sellers can take advantage of the shifting “spring” sales season to raise their asking prices a little higher without worrying much about appraisal issues.
Behaviors Are Changing
Over the past few months, a lot has changed during the pandemic. One of the most significant is the way our lifestyles and needs have changed. We are spending more time in our homes with family, and it could well be the new norm as more people adapt their homes to the new reality. People now want more outdoor space, a home office, and the ability to socially distance.
It means moving up from a condo for some families, and others, from a townhouse to a spacious detached home. In short, the pandemic has made many people rethink their way of life. It’s a time of transition for everyone. So, if you have lots of space, a home office, and located in a neighborhood with lots of open spaces, selling now could be a great opportunity.
Sellers Have a Clear Advantage Now
As mentioned earlier, there’s an inventory shortage in the market right now, which spells a seller’s market. You might have decided to wait out the pandemic, but the current trends show that it’s an ideal time to take action. You don’t have to sell now, but if you do your research well and find out how your local real estate market is performing, it could be your best decision.
There’s No Perfect Way to Time the Market
Whether you decide to sell your home or wait for the pandemic to pass, it all depends on your perspective. But the facts are clear. With super-low interest rates driving buyer decisions, a shifting sales market, and behavioral changes continuing to drive interest in various properties, there’s no doubt selling a home now offers sellers an advantage that may not last for long.