Last updated on
Should now be the right time to sell your house? Take a look at how demand and mortgage rates can impact your decision.
Mortgage rates are historically low, meaning buyers have been looking to buy more homes. January of this year, Fannie Mae released a study on consumer confidence in home buying and selling conditions, which revealed that consumers had taken on a pessimistic view of housing among health-related uncertainty since 2009.
A recent poll reveals a change in the percentage of people who say it’s a good time to sell a house due to fears of COVID. The percent believing it’s not a good time increased from 33% to 42%, while there is a drop in those that say it is, marginally. This fluctuation is the first since April and may signal an increase where houses are less available on the market-starts as potential sellers hold back and await good news.
It may still be the right time to sell. As existing-home sales in 2020 reached their highest level since 2006, prices followed. The National Association of Realtors (NAR) reported the median existing-home sales price was $309,800 in December, up 12.9% from one year earlier. With prices surging, homeowners wonder if this is the right time to make a move.
Been thinking about selling your home sooner rather than later? Now might be the time with more buyers eager to get in on the inventory shortage. However, when you do, you’ll also need a place to live. If you are thinking about selling your home sooner rather than later, now is a good time with a tendency for higher demand in markets where inventory is minimal.
Are Home Improvements Worth the Investment?
Some homeowners believe improvements they make to their house may be a worthwhile investment. They need to compare the cost of the improvements versus the price they could get for their house when selling it.
There are two sorts of home improvement projects which you should analyze for sales potential: cosmetic changes and important repairs. Cosmetic changes include things like reseeding a lawn, painting walls, and purchasing appliances. Important repair work includes things like reroofing a home or replacing the electrical system.
Take Advantage of Low Mortgage Interest Rates
Mortgage rates reached historic lows during a pandemic. While rates rose in January, the Federal Reserve announced it will keep interest rates low from now on. With the Federal Reserve intent on keeping borrowing rates low indefinitely, 2020’s average mortgage rate is predicted to be 3%, and 2021’s is anticipated to be 3.1%. Things are expected to stay at these levels as long as the pandemic continues, but mortgages may rise if economic growth strengthens.
The only way to take advantage of today’s interest rates is by refinancing a mortgage on a home you already own or taking out another mortgage. Use an online mortgage refinance calculator to estimate your new monthly payments. Kazmilaw.com advises weighing your risks.
Is 2021 a Good Time to Sell Your House?
There arise questions from time to time about whether or not it is a good year in which to sell one’s residence. Nine times out of ten, when the issue is raised, the person asking has no intention of moving, but desires to know how much profit that can be anticipated at this point in time. Possible fluctuations in the price equate what happens traditionally in any market: inflation and recession.
Interest rates are appearing lower and if you want to sell your house, now is a good time. Take advantage of the low prices anytime you can. The idea behind interest rates and the house that people want to sell is that there can be many people out there who are waiting for this opportunity. Low-interest rates also may mean more people who might want to buy your home with a fixed contract, promising higher prices in the future.