It’s a seller’s market right now. This has been true for years, and the conditions have only been amplified as a result of the pandemic. Buyer demand is high, seller inventory is low and mortgage rates are very favorable. There are other factors from this pandemic that may forever change how people view real estate. You may already have a long-term real estate plan in mind. However, is it already time to rethink that plan?
Most of us have at least a general life plan in mind. You may have bought a starter house with the intention to move up in 5-10 years. Maybe you purchased a home in the suburbs because of your work or for your children’s school district, yet your eventual goal is to move out to the country. A lot of homeowners adapted to a sudden multi-generational home lifestyle in 2020. Could that change your future housing needs and your overall real estate plan?
There are so many different factors to consider. Let’s look at a few:
Where Do You Really Want to Live?
This has become a major question that homeowners need to ask themselves. Remote working and schooling trends have provided many people much more flexibility in terms of where they can live. You may not have to live that close to work anymore. What school district you live in may not matter as much as it did when you bought your current home.
Do you want to move out to the country? Do you want to live in a different state with better taxes? Really think about where you would like to live and if your situation allows for this goal to happen sooner than you originally expected. It may be an optimal time to sell your house and move to your dream location. Or, you could sell your big house and buy two smaller homes/condos in different areas that will give you the best of both worlds. A remote career may allow you to live the snowbird lifestyle long before your actual retirement.
Have Your Housing Needs Changed?
The pandemic changed the housing needs for many people. Some features became less important, while others (home office space, home gyms, multi-generational living quarters, etc.) suddenly became very important. Are these short-term adaptations or will they be long-term factors that affect the type of property you need to own? Maybe your current home just doesn’t check all the boxes like it did when you bought it. Perhaps your home checks a lot of boxes for someone else who is eagerly looking to buy and willing to make a great offer. Does it make sense to sell in this hot seller’s market and find a new home that better suits your changing housing needs?
Is Your Nest Empty?
Contrary to many families who had to make room for a multi-generational living situation, there are plenty of empty-nesters out there. Your house may be bigger and more expensive than you really need. Maybe you chose to—or were forced to—take an early retirement in the COVID-19 economy. There is no shortage of home buyers out there looking for big family houses like yours. You may be in a prime position to sell it for maximum value and use that money toward your dream retirement home. You might not have planned to move out for another 5-10 years, but now may be the perfect time to accelerate that retirement plan.
Can You Move Up Sooner Than Expected?
Market conditions are allowing homeowners to move up into larger homes sooner than they originally expected. Home prices have been high and we’re seeing some really aggressive purchase offers from buyers, making it great for sellers. At the same time, mortgage rates are so low that your equity and a new loan can go a long way toward another new home—a bigger home that is ideal for your family. You may be able to move up now rather than waiting several years like you previously planned.
What is Holding You Back?
Ultimately, you have to decide what is right for you and your family. Staying put may be your best option, or a move might make a lot of sense. It’s time to rethink your long-term real estate plan and possibly make some goals happen sooner than expected because of everything that has changed because of COVID-19. Our lives will eventually get back to “normal” again, but what will your “new normal” be and how will that impact where and how you live? Now may be time to take action and make your long-term real estate goals an immediate reality!
If you are thinking about buying or selling a home in the Southeastern Pennsylvania or Northern Delaware areas, contact The Cyr Team today for a no-obligation introductory real estate consultation. Let us help you make the right decisions for your future and get the most out of your home purchase or sale.