It’s been an uncertain few months in the United States real estate market, largely due to the COVID-19 pandemic and an unstable economy. If you were planning on selling your home this fall, you may now be asking “is now a good time to sell?” or “should I wait to sell until everything settles down?”
The choice to sell will ultimately depend on current market conditions and personal circumstances. However, it is a seller’s market, meaning the buyers outnumber the sellers in the housing market. Selling your home now could work to your advantage.
Here are some reasons why the time to sell your home is now:
Homebuyer Demand
According to the National Association of Realtors (NAR), the market is showing signs of a strong rebound. Pending home sales increased by 44.3%, and that number is expected to increase through the end of the year. This is great news for the industry, as the housing market came to a near standstill in the spring due to COVID-19 “shelter at home” orders and virtual-only open houses.
With the restrictions now lifted in many areas, potential homebuyers are picking up where they left off this spring and scouring the market for homes. The demand is trending toward suburbs and smaller towns as many companies are allowing their employees to work remotely. If this trend continues, potential buyers will be able to expand their search area and get more bang for their buck when it comes to their home purchase.
Low Home Inventory
The available homes for sale are at an all-time low, a trend that continued from 2019. The storage increased during the pandemic, but it is in large part due to the fact that Americans are living in their homes longer than in previous generations. NAR studies show that homeowners live in their homes an average of 13 years, an increase of three years from 2008 alone. Additionally, mortgage forbearance, expanded unemployment benefits, and other stimulus programs have allowed homeowners to remain in their homes, thus decreasing available inventory.
Higher Home Prices
With increased demand and lower home inventory, the current market conditions are perfect for sellers to receive top dollar for their homes. In the first quarter of 2020, the average single-family home price increased by 7.7%. The added bonus for prospective home sellers? The home purchase prices are higher now than they were pre-COVID, and this trend is also expected to continue through the remainder of 2020.
Lower Mortgage Interest Rates
Interest rates are at a historic low, resulting in an influx of mortgage pre-qualifications and applications in the last twelve months. For 30-year fixed mortgages, the average rate hit a record low of 3.07% according to a July 2020 report from Freddie Mac. The lower interest rates mean homeowners can potentially save thousands in interest over the lifetime of the loan.
Changing Homebuyer Needs
between working remotely and social limitations due to the pandemic, people have been spending more time at home. As a result, many are discovering their current home is not as functional, comfortable, or roomy as it was pre-COVID. Potential buyers are looking to “trade up” for homes with dedicated home offices, expanded outdoor spaces, and more space in general to better fit their needs in our “new normal.”
If you’re in need of a conventional loan, down payment assistance, or mortgage financing, you can trust the experienced professionals at Pacor Mortgage. Give us a call today at 773-881-7744 to set up an appointment, or visit our website to learn more about how our services can assist you.
2020 Pacor Mortgage Corp.
Loan officer NMLS #: 208731. Loan inquiries and applications in states where I am not licensed will be referred to a Pacor Loan Officer who is licensed in the property state. Pacor Mortgage Corp is located at 14930 Cicero Ave, Oak Forest, IL 60452, Phone 773-881-7744 (Unique Identifier #120945). 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.