In 2020, buyer demand increased thanks to record low mortgage rates. Homebuyers are eager to purchase, but the low inventory of available homes on the market led to increased demand and higher home prices – making it a seller’s market. For homeowners, it’s a great time to sell your home and receive a maximum return on your investment. But the question remains: will 2021 follow the same trend?
If you’re unsure about selling your home, the experts at Pacor Mortgage offer reasons to sell and reasons to wait, depending on your circumstances.
Reasons to Sell
- Low Interest Rates. It’s well-known that mortgage rates hit historic lows in 2020. Real estate professionals predicted interest rates would hover below 4% in 2020, even before the pandemic. The pandemic’s impact played a major role in lowering the interest rate. According to Freddie Mac, the first time mortgage interest rates set a record was in early March 2020 with a rate of 3.29 percent – a 50-year low. That record was broken in early December 2020 when the rates plummeted to 2.71% for a 30-year fixed-rate mortgage. Interest rates are expected to rise throughout 2021, reaching 3.4% by the end of the year, but that is still low compared to historical mortgage rates.
- You’re Still In Your First Home. Entry-level priced homes, often purchased as starter homes, are expected to see increased buyer interest throughout 2021 – especially in areas where home prices are increasing. Entry-level pricing is considered the lower 33 percent of home sale prices in the area. The low inventory of available homes in the current market creates opportunities for sellers to benefit from eager buyers, as well as possible multiple purchase offers above the listing price.
- You Need to Move. If you need to move due to a job change or for any other reason, it’s still possible to sell your home and find a new one. The low inventory and high demand can help your home sell. According to realtor.com, a home priced on par with its market value or a competitively-priced home will sell quickly. However, if you have a loss of income or are unable to pay your mortgage, selling could be a valid option.
Reasons to Wait
- You Recently Refinanced. There’s no reason to sell your home soon if you refinanced recently to take advantage of record-low mortgage rates. Hopefully, your refinance lowered your monthly payments and helped to ease some financial stress. Refinancing is an alternative to selling your home, especially if you haven’t found the right home yet.
- You’re Worried About Affording a Home. The pandemic has made everyone uneasy about the future of our jobs and income, even if you’re fortunate even to avoid being furloughed or unemployed. If you have any doubts or uncertainties, you should delay selling your home and purchasing a new one until the economy and job markets rebound. If you do experience any loss of income, contact your mortgage lender to discuss deferring payments for the short-term. The Coronavirus Aid, Relief, and Economic Security (CARES) Act also provides options for mortgage payment assistance due to COVID-19.
- You’re Worried About Finding a Home. Being in a seller’s market puts a home seller at an advantage and a disadvantage. The good news is that you will likely sell your home quickly and higher than the asking price. However, in a real estate market with low supply and high demand, this means you’ll have to find your new home quickly and participate in a bidding war to get the house you want. Waiting for a more balanced real estate market likely will not hinder your ability to get a good purchase price for your home. While there likely won’t be multiple offers above the asking price, you’ll still see positive growth with your home’s value.
When you’re looking for an outstanding resource for mortgage financing, look no further than Pacor Mortgage! Our 35 years of experience is what makes us the optimal choice for your mortgage needs. For more information about our services or to schedule an appointment with us, contact us at 773-881-7744 or fill out our contact form.
2021 Pacor Mortgage Corp. Pacor Mortgage Corp is located at 14930 Cicero Ave, Oak Forest, IL 60452, Phone 773-881-7744 (Unique Identifier #120945). For Licensing information, go to: www.nmlsconsumeraccess.org. Pacor Mortgage Corp is an equal housing lender and is licensed by the Secretary of State under the Illinois Residential Mortgage Lending Act and is assigned Illinois Residential Mortgage License MB.0000892. Pacor Mortgage Corp branches operate with the following licenses and is assigned Illinois Residential Mortgage License MB.0000892-001, with a Wisconsin License # 260345BA, Palos Heights NMLS 261297 and is assigned Illinois Residential Mortgage License MB.0000892-008, Colorado, Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, California license # 41DBO-67516, Florida MLD1075, Indiana DFI 13177, Maryland 23528, Michigan FL0828, Michigan SR1130, Minnesota MN-MO-120945, North Carolina L-184546, Ohio RM.804151.000, Pennsylvania 43855, South Carolina, MLS – 120945, Wisconsin 120945BA, Kalamazoo, MI NMLS 120945 also DBA Lake Pacor Home Mortgage. This is not an offer for an extension of credit, a rate lock or a commitment to lend. All loans must satisfy company underwriting guidelines and any investor overlays. Any of the advertised products may be discontinued at any time. Information and pricing are subject to change at any time and without notice. Loans are being committed and closed at expressed rates although these rates change and may not be available at time of your lock in, commitment and / or closing. Pacor Mortgage Corp is not affiliated with your current lender, nor is it an agency or extension of the Federal Government, Fannie Mae, Freddie Mac or HUD.