Do you need help determining whether selling your home is a wise move? Here are some reasons you should consider selling your house.
Mortgage Rates Rise Up
Over the tail end of 2020, advancing towards 2021, mortgage rates dropped close to historical lows. This encouraged more purchasers to look for an ideal home. Hence, as more purchasers see enticing mortgage plans, it raises demand, which works well for sales. But rates are starting to rise.
Though there are no methods of predicting how rates may proceed from there, the slight rise is a very compelling motivating factor to sell your house presently. Whether you are applying for an FHA loan, conventional loan, VA loan, or other loan types, the basis of a low mortgage rate starts with maintaining your credit score with the highest points you can get. Get your mortgage pre-approval from a respected firm. A pre-approval from an unknown or big-box lender may incur suspicion in a seller’s mind.
Demand Continues to Grow
To gather interest from competing buyers, a house must be sold successfully. Demand for housing, particularly within the suburbs, stays high. Per projections from Freddie Mac, home sales will exceed 7 million in 2021. The National Association of Realtors reported that beginning families and millennials would form the majority of house purchasers at 38%.
Supply is Slow to Catch Up
The COVID-19 pandemic hindered multiple fresh construction projects while soaring material prices eventually prompted builders to focus on luxury housing where they can make a better profit. Furthermore, a shortage of existing homes means that homes are selling just as fast as they are hitting the market in many areas.
However, sales rates are starting to dwindle, which is one of the best reasons to sell your home now rather than later. According to 69% of surveyed Zillow Home Price Expectations (ZHPE) panelists, market-ready home inventory might persistently expand into the latter half of 2021 or the start of 2022. To sellers, inventory implies more incredible battles for buyers’ patronage.
High Appreciation and Home Prices
Over the winter of 2020, homeowners drew a median of $17,000 in equity, reported by data from CoreLogic. Also, the statistics persisted in expanding as home values appreciated. Numerous homeowners opted to draw profit leveraging from this equity or employ this to upgrade quality when looking for their ideal personal residence. This increased equity, with more fertile market conditions that include high demand, and low supply, renders it a conducive time for sales. While most sellers thought the pandemic might trigger a price fall, the reverse has proven true.
Your Circumstances Have Changed
The past year has witnessed massive shifts due to the COVID-19 pandemic. Whether working at home, in brid classes or wanting more space, the pandemic prompted numerous homeowners to review their living conditions. Commuting to work is optional, or you are now bored with your immediate surroundings and desire bigger natural spaces or more facilities. Thus, an increasingly compelling reason for selling your house is for personal gain. The present time is ideal for leveraging the thriving seller’s market as you remain able to.
Sell in 2022: A High-Interest Rate Fails to Deter
Towards the end of 2022, mortgage interest rates have soared higher than indicated in recent history. For most homeowners, that works out in getting them to stay in their present house. The interest rate is not a pressing issue. Equity during the point of sale may result in a significant down payment.
