Housing inventory is woefully low throughout the United States, and especially here in our local market. Normally, we will have around 3-4 months’ worth of houses on the market. Right now, it’s more like only 5-6 weeks (or less) of inventory. Buyers are clamoring to buy and the historically low mortgage rates are giving them more buying power. However, there just aren’t enough homes for sale. However, now could be the perfect time to sell your home.
If you are in a situation where you have been on the fence about selling your home or other extenuating factors (work relocation, divorce, family needs, forbearance, etc.) are pushing you toward making a move, now is a great time to sell. Home prices are high and transactions are closing quickly with little risk of deals falling through. Not only that, but buyers are desperate and are giving up more than they probably should to try and get the homes they want.
Even some of our highest-end homes that usually take a while to sell are getting offers almost immediately. We’ve never seen anything quite like this. Demand is so high, yet supply is so low. We don’t know exactly how long these market conditions will last. Prices at this level may not be sustainable or we could all be put on lockdown again. Nobody knows exactly what the rest of this crazy year has in store!
If you are thinking about selling your home, here are a few of the questions you may want to consider:
Will Your Family Situation Benefit from a Move?
If COVID-19 has taught us anything, it’s that things can get a bit cramped at home when everyone is there. College kids, grandparents, in-laws—a lot of families spent a lot more time together and it made almost everyone reevaluate their housing needs. Maybe you need to move closer to an elderly family member or just have more space. Perhaps your family situation will benefit from selling your current home and finding a more suitable property.
Will a Move Impact Your Career?
If you are in a situation where you need to relocate for your work, then selling now obviously makes sense. Another thing to consider is if you need to live where you live now. Many people are able to work from home these days, and we only expect this remote lifestyle to become more and more “normal” even after the worst of coronavirus is behind us. This allows you to live just about anywhere you want and still work effectively. It could be a good time to sell your urban or suburban home and move even further out to the country or to a different part of the United States altogether—perhaps to a state with lower taxes or a lifestyle you like much better.
Does Your Current Home Meet Your Housing Needs?
We’ve already talked about how many people have been reevaluating their housing needs during these past several months. Features like a home office or a home gym may be more important. Some of us just want more space and privacy. Your house may be the perfect fit for someone else who is willing to pay a lot for it. If it’s not right for you, it could be time to sell and move on to a place that better fits your housing needs.
Was Your Financial Situation Affected by COVID-19?
This can be an uncomfortable topic to address, but it is a reality of our economy in 2020. Many workers lost their jobs or were at least temporarily furloughed as businesses were shutdown. Business owners (especially in industries like restaurants, gyms, theaters and bars) have suffered. Nobody knows for sure if there will be more shutdowns as the virus continues to spread like wildfire this summer. Even when COVID-19 is no longer a threat, it will take time for our economy to fully recover.
Many homeowners took advantage of forbearance options to delay mortgage payments. This does not mean the payments are forgiven. They will have to be made up at some point. The good news is most properties have continued to rise significantly in value this year because of the market conditions. This could put you in a great equity situation that more than makes up for any mortgage payments you have missed. It might be ideal timing to sell now and still walk away with a good profit before you get in over your head with mortgage payments you can’t quite afford or a damaged credit history.
Check out this Cyr Team YouTube video we recently put together on the topic of mortgage forbearance:
Are You Worried About Getting Your House Ready to Sell?
In a traditional real estate market, you want to take the time and invest the money to get your home ready for the market. This means making repairs, painting, doing some upgrades and staging it for maximum curb appeal. Right now, buyers are willing to look past a lot of issues and many are even waiving home inspections and other steps that could usually complicate a sale. This is definitely to the seller’s advantage, but you still want to be careful. If you know of any problems, we highly recommend disclosing everything upfront to avoid legal concerns down the road. Otherwise, even homes that are in need of some TLC are selling quickly in today’s market. We can advise you on the best approach is some repairs are needed.
Do You Have an Exit Plan?
Even though now is a fantastic time to sell a house because of these extreme market conditions, it does not mean you should go about it without a proper exit plan. You will want to figure out where you intend to move and how you expect to finance your new home purchase. If you have the means, the ideal option is to find and get in contract on your new house before you list your current home for sale. You can be doing the prep work to get your house ready to sell while you are searching for your new home. This way, there is minimal overlap between transactions.
Another option to consider is to be okay with renting for a little while until you find your dream home. This gives you a little time to search and not make a hasty (i.e. desperate) buying decision. Also, you will be able to make your purchase offer without the contingency of your other sale. This strengthens your buying position in a very fast-moving market where sellers are looking to avoid any potential complications that could delay or derail their sale.
Is it Time for You to Sell Your Home?
These are just a few questions you can ask yourself, as well as a few common situations where it definitely makes sense to sell in today’s real estate market. Some homeowners will be content to stay put and maybe even try to refinance. Others will see this as a great opportunity to sell quickly for top dollar and move onto a better situation.
If you are looking to buy or sell a home in Southeastern Pennsylvania or Northern Delaware, contact The Cyr Team today for the best in local real estate representation. We’ll be happy to answer all your questions and determine if a move is right for you.