Last Updated on September 2, 2022
If your plans to put your home on the market were put on hold with the pandemic, you might be wondering if now’s a good time to sell.
Contrary to any uneasiness you might feel about the real estate market, experts actually agree— now might be one of the best times to put your home on the market; here’s why:
Reason #1: Home inventory is at an all time low
Before COVID-19 hit the US in early March, inventory was already low. Combine low inventory levels with sellers holding off on putting their home on the market, and inventory is lower than low. According to a recent report by realtor.com, June 2020’s inventory levels were 27% lower than the prior year.
Low inventory levels are great for sellers, as it typically means anything that enters the marketplace–given the fact that it’s in good condition— will be under contract fast.
Reason #2: Buyer demand is very strong
Because most buyers had to put their home buying desires on hold for several months, housing demand is now very high. The latest data from the National Association of Realtors showed that pending home sales had a 44.3% monthly increase in May–which is the highest month over month increase since 2001. We’re also seeing this trend locally in the Carolinas, as Allen Tate’s sales units were up 13% in June, compared to last June.
Reason #3: Mortgage rates are favorable
Last week, for the first time in 50 years, mortgage rates for a 30 year fixed rate mortgage fell below 3%. Not only does this allow buyers to get more home for their money, it also means more and more buyers will be entering the market–further increasing buyer demand.
Reason #4: Home prices are up
Some prospective home sellers feared COVID-19 would cause a decrease in housing prices; however, we’re seeing quite the opposite. Housing prices are a factor of supply and demand–when supply is down and demand is up, housing prices rise.
Given the current real estate market, sellers who have maintained their homes can expect to earn top dollar for their home.
Reason #5: Many buyers’ needs have changed
In the midst of the coronavirus, many adults find themselves working at home full time. Tired of using the dining room as their work space, new buyers are entering the marketplace searching for homes with more space and home offices on their wish list.
Additionally, as people spend more and more time at home, they’re realizing their current home doesn’t meet their current needs. As a result, buyers are also searching for homes with bonus spaces and outdoor living.
As a seller, you can use this knowledge to play to your home’s strengths and position it well to potential buyers looking for different features.