While 2021 may be a record-breaking year for home prices, many in the know in real estate think it will change in the next couple of years. Besides, if you do want to sell your house in Broadview Heights, waiting is always uncertain and can be a dangerous game financially. So here are 5 reasons why you should sell your house in 2021.
1. Interest Rates Remain A Record Low
One solid reason to sell your house in 2021 is that although interest rates are rising, they are at record lows compared to what we’ve seen in the past. Mortgage interest rates remain well below 1981’s historic high of 18+%. That means people are still willing to take on a large 30-year mortgage to buy your house. In addition, although interest rates tend to parallel the interest rate activity of the Fed, mortgage interest rates are, nevertheless, tied to a person’s financial status and the property itself.
2. New Buyers Continue to Enter the Market
Because interest rates are holding steady, real estate buyer activity is holding strong. From the low end to the high end of the price range, there are still plenty of new buyers entering the market. And a high percentage of millennials are entering the home-buying market.
Millennials make up at least 36% of the home-buying market. A recent Harris Poll found that more than 20% of Americans between the ages of 18 and 34 intend to buy a house within the next 12-month period. If like last year, your house may sit on the market for a day or two because there are still plenty of younger buyers, and buying activity is still robust.
3. Houses Sell Pretty Quickly
Another reason why you should sell your house in 2021 is that houses are still selling fairly quickly, and it won’t take long to get an offer– or multiple offers. But the thing to keep in mind is that this state of affairs is changing, so you should take advantage of it before it is gone. Inventory is currently below demand, but that won’t last long. So the sooner you can list your house, the better it will be, with respect to a quick sale and a good price.
4. There Is Still Good Profit Potential
Over the past nine years, home prices have seen an astounding rise, going from a median price of $154,700 in 2012 to $320,000 last year. That is changing, though: many home listings are not expected to continue to push the price and values as high as they did the past two years. But that’s a good thing and another reason why you should sell your house in 2021.
Leveling prices and record low interest rates just mean that more people are willing to buy. And, besides, home prices haven’t dropped – it’s just that the rate of increase has slowed. Competition may be a little keener, but 2021 remains a good time to sell your home. Keep in mind, too, that sellers who list early in the year tend to do better because the market is changing and will favor buyers before too long.
5. Houses Below $600,000 Are in Demand
Most people are not trying to sell upper-end houses that approach a price of $800,000+. In the arena of non-luxury homes, inventory is still lagging behind demand, and there are more buyers interested in houses at this price point. So, again, 2021 is a good time to sell your house because the market for affordable houses is great and hopefully as good as it was last year. The likelihood of multiple offers in 2021 – perhaps even above your asking price – remains high.
The reasons why you should sell your house in 2021 are numerous and undeniable. But the market conditions behind those reasons are changing and will turn the real estate tide toward a buyers market in the near future. Good things can only last so long.